Mexican Media Brands
Harley-Davidson Fourth-Quarter Income Plunges 94%
Motorcycle maker Harley-Davidson Inc. saw its net income in last year’s fourth quarter plummet to $495,000 from $8.3 million in the 2017.
#economics
Share
Motorcycle maker Harley-Davidson Inc. saw its net income in last year’s fourth quarter plummet to $495,000 from $8.3 million in the 2017.
Wholesales in October-December fell 9% to 43,500 bikes. Retail sales fell 7%. Revenue from motorcycle sales dropped 9% to $956 million. Operating income skidded to $3.7 million from $99.2 million.
Harley-Davidson blames the slump on the cost of restructuring its manufacturing operations, a rise in recall expenses and the impact of import tariffs imposed by Europe and China in response to new U.S. import taxes.
The company says incremental tariffs on its products cost $24 million last year, including $13 million in the fourth quarter.
For the full year, Harley-Davidson’s revenue advanced 1% to $4.97 billion, even though unit sales dropped 6% to 228,100 bikes. Net income rose 2% to $531 million. The company predicts unit sales this year will drop 3%-5%.
Longer term, Harley believes 100 new models and 50% growth overseas by 2027 will boost results. The company says it attracted 52,000 new riders in 2018 and aims to find nearly 2 million more worldwide within 10 years.
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data