Harley reports lackluster quarter on lower demand, higher competition

Milwaukee-based motorcycle manufacturer Harley-Davidson Inc. today reported second quarter net income of $299.8 million, or $1.44 per share, down from $354.2 million, or $1.62 per share, in the second quarter of 2014.

The company expected a dip in earnings due to unfavorable currency-driven competitive pressures in the U.S. and lower demand that led Harley to decrease shipments in April.

Operating income was $462.5 million in the quarter, down from $547.7 million in the same period a year ago.

Revenue totaled $1.8 billion in the second quarter, down from $2 billion in the second quarter of 2014.

Dealer new motorcycle sales decreased 1.4 percent globally in the quarter, compared to the year-ago period.

“In the face of a tough competitive environment, driven mostly by currency and greater competitive activity, we are leveraging our many strengths and meeting the challenge head on,” said Matt Levatich, president and chief executive officer of Harley-Davidson. “Our actions during the quarter have had a positive impact. We are encouraged by the momentum at retail as the quarter progressed, both in the U.S. and internationally.

“We are confident in the strength of our business and the strategies we have in place to maintain our industry leadership and grow our business over the long term. Our singular focus on the customer through unrivaled products, unique experiences and our expanding dealer network is the bedrock we are building on to continue to grow our reach and impact with customers across the globe.”

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