Harley-Davidson sees revenue decline and share-price plunge
The US motorcycle manufacturer says it saw an 8.5 per cent annual fall in revenue to $874.1m in the fourth quarter
Harley-Davidson has reported a larger-than-expected decline in its motorcycles revenue. This was due to a continuing fall in retail sales in the US resulting in its shares plunging in pre-market trade.
The American motorcycle manufacturer said revenues at its motorcycles, parts and accessories, and general merchandise segment fell an annual 8.5 per cent to $874.1m (£671.9 m) in the fourth quarter to end-December from $955.6m a year ago.
Harley’s shares were last trading down 7.2per cent at $32.34 in pre-market trade.
In the December quarter, US retail sales declined for the 12th straight quarter, falling an annual 3.1 per cent.
The company expects revenues from the motorcycles segment to be about $4.53bn to $4.66bn in 2020 compared with $4.57bn last year.
Additionally, lower restructuring expenses helped the company report higher profits in the latest quarter. Its net income rose to $13.5m or $0.09 a share in the December quarter from $0.5m or $0.00 per share a year earlier.
Adjusted profit for the quarter came in at 20 cents a share, compared with 17 cents per share last year.
Harley-Davidson recently launched a new performance option with the introduction of the Screamin’ Eagle Milwaukee-Eight 131 Crate Engine for Touring model motorcycles.
The new 131 cubic inch V-Twin delivers the “biggest, most powerful street-compliant engine Harley-Davidson has ever created”, the company said.
FURTHER READING: Production of Harley’s first electric motorbike halted