Harley Davidson’s earnings per share excluding items for the first quarter was 98 cents against the average analyst forecast of 65 cents per share. Harley Davidson has stuck to its full year forecast.
On Tuesday, Harley-Davidson Inc reported that its first quarter profits have exceeded its expectations and stuck to its full-year forecasts.
The development comes in the face of growing concerns over falling U.S. sales and potential imposition of European import tariffs.
The news sent its shares up by 3%.
Earlier, U.S. President Donald Trump, had criticized Harley Davidson for its plans to shift a portion of its U.S. production overseas, following EU threats of imposing tariffs on U.S. products.
In recent times, the U.S. motorcycle maker has been weighed down by a continuing decline in its popularity both in the United States and globally.
Harley Davidson’s first quarter profits are significant since they come despite these concerns and furthermore they topped Wall Street’s profit forecasts by more than 30 cents per share.
The European motorcycle market is a growing market for Harley Davidson. So as to mitigate potential EU retaliatory tariffs of additional import duty, it has boosted its investment at its Thailand plant from which it can serve the European market.
In the U.S., retail motorcycle sales, have fallen by 4.2% in the first quarter ended March. 31. Its European sales were down by 2.1%.
While its overall net income has fallen by 26.7% to $127.9 million in the first quarter, revenue from motorcycles and related products have fallen by 12.3% to $1.19 billion – in line with forecasts.