On Tuesday, Harley-Davidson lowered its forecast for deliveries of its motorcycles in 2019 after the fall in world sales in the second quarter, penalized by rising customs costs and weak demand in the United States.
The Milwaukee, Wisconsin-based company now plans to ship between 212,000 and 217,000 bicycles in 2019. This compares with the company’s initial estimates of 217,000 to 222,000 bikes for the year.
The motorcycle’s operating margin or the company’s earnings per dollar of sales after accounting for production costs, were also revised downwards.
Harley now expects operating margin as a percent of revenue to be about 6% to 7% this year, lower than the 8.0% to 9.0% estimated earlier.
In the last quarter, quarterly profits fell 19.3%. The company said its net income fell to $ 195.63 million, or $ 1.23 per share, in the second quarter ended June 30, from $ 242.34 million, or $ 1.45 per share, one year earlier. Analysts surveyed by Refinitiv, on average, expected the earnings to come in at $1.20 per share.
Your email address will not be published. Required fields are marked *