Harley-Davidson’s revenue decreases during 1Q, profits increase

Freeman Staff

April 21, 2015

MILWAUKEE — An unfavorable foreign currency exchange negatively affected Harley-Davidson, Inc.’s revenue during the first quarter, but the company managed to make a modest profit.

According to the Milwaukee company on Tuesday, diluted earnings per share increased 5 percent to $1.27 compared to diluted EPS of $1.21 during the first quarter of 2014. Net income was $269.9 million on consolidated revenue of $1.67 billion compared to net income of $265.9 million on consolidated revenue of $1.73 billion in the first quarter of 2014.

In addition to the foreign currency exchange, Harley-Davidson also cited lower motorcycle shipments for its decline in revenue.

“While the first quarter had its share of headwinds, our business is strong and we remain clearly focused on executing Harley-Davidson’s strategy to be customer-led in everything we do, grow our reach among new customers in the U.S., grow internationally and continuously improve every aspect of our operations,” said Keith Wandell, chairman, president and chief executive officer of Harley-Davidson, Inc., in a statement. “We continue to manage Harley-Davidson for long-term performance from a position of great strength.”

During the first quarter of 2015, worldwide retail sales of new Harley-Davidson motorcycles decreased 1.3 percent compared to last year’s first quarter, according to the company, and dealers worldwide sold 56,661 new Harley-Davidson motorcycles in the first quarter of 2015 compared to 57,415 motorcycles in the year-ago quarter.

Sales of new Harley-Davidson motorcycles also declined 0.7 percent domestically during the first quarter. In the U.S. for that period, dealers sold 35,488 new Harley-Davidson motorcycles compared to sales of 35,730 motorcycles in the year-ago period.

“The company believes increased, aggressive competitive motorcycle discounting was among the factors adversely affecting first-quarter U.S. retail Harley-Davidson sales,” according to Monday’s announcement.