NEW YORK ? Americans are buying Harleys again after four years of shunning the pricey motorcycles.
Harley-Davidson reported an increase in U.S. sales for the second quarter, marking what could be a turning point for the iconic bike maker, as well as overall consumer spending habits.
And the Milwaukee-based company is betting that the sales will keep growing. It boosted its shipment forecast for 2011, sending its shares up $3.89, or 9.4 percent, to $45.30 in premarket trading.
U.S. retail sales of new motorcycles grew 7.5 percent to 53,599 bikes, marking the company's first domestic sales increase since the fourth quarter of 2006. Overseas, sales rose just 2.4 percent to 29,797 bikes.
The sales mark a big change from just two years ago when Harley was shuttering plants and cutting thousands of jobs as it tried to ride out one of the toughest economic slumps in its history.
They also helped the company's profit. Harley-Davidson Inc. earned $190.6 million, or 81 cents per share, more than double the $71.2 million, or 30 cents per share, it earned in the same quarter last year.
Motorcycle and related product revenue rose 18 percent to $1.34 billion.
Analysts, on average, expected a profit of 72 cents per share on $1.26 billion in sales, according to a FactSet survey.
Harley's new bike sales plunged 23 percent in 2009, as its customers put off purchases or opted for a used bike instead. Sales fell the next year too, before picking up in the first quarter of this year, boosted by stronger consumer confidence and demand from outside of the United States.
Harley expects to ship between 228,000 and 235,000 new bikes worldwide this year, representing an increase of 8 percent to 12 percent over 2010 levels. It had expected to ship 215,000 to 228,000 cycles.
That could bode well for the economy. Many consumers view Harley-Davidson's bikes ? which can cost upward of $30,000 ? as pricey toys rather than necessary transportation. A jump in sales could signal that the American consumer is starting to feel better about the economy and their own job security.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.