Nicholas Kamm | AFP | Getty Images
President Donald Trump speaks to Harley Davidson CEO Matthew Levatich as he gathers for a meeting with Harley Davidson executives and union representatives on the South Lawn White House in Washington, DC on February 2, 2017.
President Donald Trump appeared to reverse Harley Davidson's stance on Tuesday, pledging to avenge "unjust" tariffs on the European Union, which in part blamed the company for its nearly 27% decline in profits.
Harley announced last year plans to relocate production of its EU-designated motorcycles from the US overseas to avoid EU retaliation against Trump's tariffs on aluminum and steel imports. Then Trump called for a boycott of the company and threatened with higher taxes than retaliation.
The White House and Harley did not respond immediately to a request for comment on Tuesday. The company holds a conference call with analysts and the press at 9:00 am (ET).
Harley said Tuesday that declining demand, higher costs of US tariffs on raw materials, and European import taxes on motorcycles detracted from returns.
The company compared what Wall Street expected:
- Adjusted earnings: 98 cents a share versus 65 cents a share in an analyst survey conducted by Refinitiv.
- Revenues: $ 1.19 billion compared to $ 1.19 billion refinish.
Harley said first-quarter net income was $ 127.9 million, with consolidated sales of $ 1.38 billion, compared to $ 174.8 million for consolidated sales of $ 1.54 billion US Dollars in 2018, a decrease of 26.8%.
Sales of motorcycles and related products declined 12.3 percent year-on-year to $ 1.19 billion.
Excluding the impact of tariffs and restructuring charges, the company said its net income dropped to $ 127.9 million, or 80 cents a share. In the first quarter ended March 31, from $ 174.76 million, or $ 1.03 per share in the previous year.
His shares rose 0.7% in pre-trading.
Harley had to contend with a decline in sales in the US in the face of fears younger buyers are less interested in large motorcycles than previous generations. In the last quarter, the company's shares were strengthened after analysts' earnings were missed.
The company has tried to get more people excited about motorcycling. In November, a preview of the LiveWire electric motorcycle in the US and Europe began to attract more riders, including younger riders.
In 2017, Harley also released a ten-year plan that would attract two million new drivers by 2027. In addition to investing in e-bikes, it has established schools across the country that teach people how to drive.