Harley-Davidson profit beats on strong US sales
Motorcycle maker Harley Davidson’s logo appears on the window of a store in Boston, Massachusetts. Harley-Davidson Inc reported a stronger-than-expected rise in quarterly profit on April 25 2012. – Reuters picNEW YORK, April 25 – Harley-Davidson Inc reported a stronger-than-expected rise in quarterly profit today, saying the US economy is on the mend, young customers are embracing its brand and it will ship more motorcycles this year than it had expected in January.
The news sent shares up 3 per cent in premarket trading.
Net earnings rose to US$172 million (RM526.97 million), or 74 cents per share, from US$119 million, or 51 cents per share, a year earlier.
Analysts, on average, were expecting profit of 72 cents a share, according to Thomson Reuters I/B/E/S.
Product sales jumped 20 per cent to US$1.27 billion, compared with Wall Street estimates of US$1.22 billion. US sales were up 26 per cent, outpacing industry growth.
The Milwaukee-based company said it now expects to ship 245,000 to 250,000 motorcycles worldwide this year, raising its estimate by 5,000 units. It added that it had limited ability to produce additional motorcycles.
It kept forecasts for gross margins and capital spending unchanged.
Harley-Davidson shares rose to US$51.99 in trading before the stock market open. At that level, the stock is near its best level since the third quarter of 2007. – Reuters
