Harley-Davidson Profit Down, But Tops View, Maintains FY Outlook

(RTTNews) - Harley-Davidson Inc. (HOG) on Tuesday reported a drop in profit for the second quarter as revenues fell on lower shipments. Nonetheless, earnings for the period trumped Wall Street's expectations, but revenues fell shy of estimates.

The Milwaukee, Wisconsin-based motorcycle maker's second-quarter profit dropped to $299.8 million or $1.44 per share from $354.2 million or $1.62 per share last year. On average, 19 analysts polled by Thomson Reuters expected earnings of $1.39 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter dropped to $1.82 billion from $2.00 billion a year ago.

Motorcycles and related products revenues declined to $1.65 billion from $1.83 billion last year. Analysts had a consensus revenue estimate of $1.67 billion for the quarter.

Dealers worldwide sold 88,931 new Harley-Davidson motorcycles in the second quarter, down 1.4 percent from last year. In the U.S., dealers sold 57,790 new Harley-Davidson motorcycles, down from 58,225 motorcycles sold a year ago.

Harley-Davidson said the results were in line with expectations, after the company decided in April to lower motorcycle shipments from initial projections for 2015, due to currency-driven competitive pressures in the U.S. and commitment to manage supply in line with demand.

"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 CEO Matt Levatich.

Looking forward to the third quarter, the company expects to ship 54,000 to 59,000 motorcycles, higher than 50,670 motorcycles shipped last year.

Harley-Davidson maintained its shipment outlook for the full year 2015 of 276,000 to 281,000 motorcycles.

HOG is currently trading at $57.12, up $2.18 or 3.97%, on the NYSE.