Harley Sales Roar Ahead
Harley-Davidson Inc. said earnings more than doubled in the second quarter as retail sales of its motorcycles rose in the U.S. for the first time since the fourth quarter of 2006.
Despite worries about the U.S. economy, the Milwaukee-based company also raised its full-year forecast of motorcycle shipments to dealers to a range of between 228,000 and 235,000, up 8 percent to 12 percent from last year. Three months ago, Harley expected a rise of as much as about 8 percent, reported The Wall Street Journal.
"We remain cautious about the economy," Keith Wandell, chief executive officer, said in an interview. "We think the consumer is skittish," he said, partly because of the wrangling in Washington over the federal budget.
But he said demand for new motorcycles has improved recently in the U.S., partly because prices for used bikes have risen, making them less tempting. Used-motorcycle prices sagged during the recession as people who lost jobs were forced to sell their motorcycles or lost them to repossessions. Harley also may have gotten a small lift in the latest quarter from disruptions in motorcycle imports from Japan, caused by the earthquake there in March.
Unit retail sales of new Harley motorcycles in the U.S. were up 7.5 percent from a year earlier during the quarter. Outside the U.S., retail sales were up 2.4 percent. International growth was held back somewhat by a sales decline in Brazil, which the company blamed on a transition to a new dealer network there.
Harley said prices will rise by an average of 1 percent on its 2012 model bikes, being introduced this month. That will be the first price increase since 2007 and will fall short of cost gains for steel and other raw materials.
Harley expects to benefit from increased manufacturing efficiency. At its giant York, Pa., plant, for instance, production is moving into a single facility from more than 20 separate buildings to improve work flow. Some tasks, such as metal stamping and grinding of metal parts, have been outsourced. New labor agreements allow Harley to use more temporary workers.
The company expects the overall savings from its restructuring efforts to total $210 million to $230 million this year.
Harley's income in the latest quarter was $190.6 million, or 81 cents a share, up from $71.2 million, or 30 cents a share, a year earlier. Sales of motorcycles and related products increased 18 percent to $1.34 billion. Revenue from financial services, including the financing of motorcycle sales, slipped 4.5 percent to $165.9 million.
More Industry

Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →