Third-quarter Harley-Davidson results exceeded Wall Street expectations as the company cut costs and boosted international sales. Profit increased 67 percent to $ 113.9 million.
The company earned 68 cents per share during the quarter, compared with 53 cents per share from analysts in a refinance
Revenue was $ 1.32 billion, compared to $ 1.15 billion a year earlier the company will generate $ 1.07 billion in revenue.
"Reshaping our business at a challenging time in our history, we are leveraging our strengths for a bright future," said Matt Levatik, President and CEO. " We are investing in building the next generation of Harley-Davidson drivers and optimizing our business to increase profitability and cash flow. Cash flow was very strong in September and sales increased by more than 3 percent despite lower motorcycle sales. " The company continues to expect to deliver 231,000 to 236,000 motorcycles in 2018, with 45,800 to 50,800 in the fourth quarter
Levatich launched an aggressive "more streets to Harley" growth plan in July, which includes an expanded lineup of lighter motorcycles, smaller urban retail stores, a new digital strategy, and an international push as US sales decline.
The Wisconsin-based company plans to launch a new platform from 500 cubic centimeters to 1250 cubic centimeters in size by 2020, a smaller bicycle for emerging markets in Asia.The largest Harley engines run at around 1,700 cc and weigh more than 1,000 pounds – representing the new lineup to a significant departure from theirs Hogs.
The company was targeted during the quarter by President Donald Trump. He criticized Harley after he announced in June that he would relocate his European market output from the US for retaliatory tariffs from the European Union.
BMO Capital Markets said that Hogs have fallen out of favor with drivers who are bringing them into trading Indian motorcycles, another traditional motorcycle brand owned by Polaris and one of Harley's main rivals. Separately, Harley-Davidson announced that it would provide a voluntary safety release for a hydraulic clutch assembly on all 2017 and 2018 Touring, Trike and CVO Touring models as well as some 2017 Softail models. The recall affects around 238,300 motorcycles worldwide and will cost the company around $ 35 million.