Harley-Davidson Profit Slips, but Shipments In Line With Expectations

Harley-Davidson Inc. posted lower earnings and revenue during the third quarter as motorcycle shipments declined as expected, reported The Wall Street Journal.

The company’s earnings topped analysts’ expectations, however, while the top line fell short.

The motorcycle maker has sought to reach beyond its traditional, middle-aged target audience with smaller bikes geared toward younger customers. While demand has been somewhat stable—dealers sold 3.4% more new motorcycles in the most recent period—shipments have slipped as of late.

In the most recent quarter, Harley said it shipped 50,670 motorcycles to dealers and distributors, an decrease of 6.2% from a year earlier, in line with the company’s expectation as it had planned to scale back.

Harley in July had cut its shipment forecast for the year to 270,000 to 275,000 bikes from its previous call of 279,000 to 284,000. Earlier this year, the company also recalled several thousand motorcycles due to an ignition switch problem that could cause the vehicles to stall during operation.

For the period ended Sept. 28, Harley posted earnings of $150.1 million, or 69 cents a share, down from $162.7 million, or 73 cents a share, a year earlier.

Revenue decreased 4.2% to $1.13 billion.

Analysts had projected 59 cents a share in earnings and $1.14 billion in revenue, according to Thomson Reuters.