profits are headed in reverse after the chopper maker on Thursday posted a 23% decline in net income for the second quarter.
The Milwaukee-based company did beat analyst estimates on revenue and earnings per share. Revenue for the quarter was $1.57 billion, compared to $1.62 billion in the year-ago quarter, a 2.9% decline. Net income was $222.8 million compared to $290.5 million a year ago, a decrease of 23.3%.
Second-quarter diluted earnings per share were 95 cents, a 16.7% percent decrease compared to last year's $1.14. Analysts polled by Thomson Reuters had expected 76 cents a share on revenue of $1.4 billion.
Harley expects full-year EPS of $3 to $3.18, a decrease of 15% to 20% compared to 2007.
"During the second quarter, we shipped 80,326 Harley-Davidson motorcycles to our dealers and distributors around the world," said Jim Ziemer, chief executive officer of Harley-Davidson. "While this result exceeds our guidance range of 76,000 to 80,000 units for the quarter, it is a decrease of 15.6 percent from the year-ago period. This decrease reflects the impact of the shipment reduction we announced April 17 in response to ongoing weakness in the U.S. economy.
"We expect U.S. economic conditions and ongoing consumer concerns to continue to create challenges at least through the end of the year," said Ziemer. "We believe the actions we took to reduce shipments to our U.S. dealers and our related workforce reduction position us appropriately for the current economic environment."
The company expects to ship between 74,000 and 78,000 Harley-Davidson motorcycles during the third quarter of 2008. For the full year, Harley-Davidson still plans to ship between 303,500 and 307,500 units.
This article was written by a staff member of TheStreet.com.