Harley-Davidson Inc. (HOG - Get Report) posted weaker-than-expected first quarter earnings Tuesday as tariffs and trade disputes hit global sales for the iconic motorcycle maker, but shares got a short-term boost from a Tweet from President Donald Trump.
Harley-Davidson said earnings for the three months ending in March came in at 80 cents per share, down 8% from the same period last year and 7 cents shy of the consensus forecast. Group revenues, the company said, were pegged at $1.38 billion, down 10.4% from last year and again shy of the Street consensus.
"Harley Davidson has struggled with Tariffs with the EU, currently paying 31%. They've had to move production overseas to try and offset some of that Tariff that they've been hit with which will rise to 66% in June of 2021." @MariaBartiromo So unfair to U.S. We will Reciprocate!— Donald J. Trump (@realDonaldTrump) April 23, 2019
Global sales fell 3.8%, Harley-Davidson said, with full-year shipments expected in the range of 217,000 to 220,000 compared to 228,051 across the whole of 2018.
"We are acting with agility and discipline to take full advantage of rapidly evolving global markets. Harley-Davidson's U.S. market share growth and retail sales performance in the first quarter are further evidence of the effects we are having as we continue to implement and dial-in our More Roads efforts," said CEO Matt Levatich. "We are driven by our un-paralleled rider focus and deep analytics that are guiding our efforts today and into the future. We, along with our dealers, are determined to lead and stimulate global industry growth."
Harley-Davidson shares were marked 2.24% lower at the start of trading following the earnings release to change hands at $39.86 each.