Harley profit beats as turnaround plan shows signs of progress
July 21 (Reuters) – U.S. motorcycle maker Harley-Davidson Inc (HOG.N) on Wednesday reported a better-than-expected quarterly profit, as it benefited from its focus on selling high-margin touring and cruiser bikes under a new turnaround plan.
Harley, which has struggled to grow sales beyond its core baby-boomer market, in February unveiled a plan to boost profits by shifting its focus back to big bikes, while eliminating slow-selling models and exiting loss-making dealerships and markets.
The company said its shipments doubled to 56,700 units in the second quarter.
“We are starting to see the initial proof points as we execute our Hardwire Strategy,” Chief Executive Officer Jochen Zeitz said in a statement.
Net profit was $206.3 million, or $1.33 per share, in the quarter ended June 27, compared with a loss of $92.2 million, or 60 cents, a year earlier. (https://bit.ly/3kHcEVt)
On an adjusted basis, Harley earned $1.41 per share in the quarter, beating analysts’ average estimate of $1.17 per share, according to IBES data from Refinitiv.
Revenue from motorcycles and related products nearly doubled to $1.33 billion.
Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D’Silva
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