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Harley-Davidson Q1 net income drops sharply amid declining sales

Source: Xinhua| 2019-04-24 03:47:04|Editor: yan
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CHICAGO, April 23 (Xinhua) -- Harley-Davidson, the iconic U.S. motorcycle maker, reported on Tuesday a 26.8-percent decline in its first quarter (Q1) net income due to declining worldwide sales.

Its Q1 2019 net income was pegged at 127.9 million U.S. dollars, down from 174.8 million dollars in the same period of 2018, while the consolidated revenue was 1.38 billion dollars in the first quarter of this year versus 1.54 billion in Q1 2018.

Harley-Davidson's worldwide retail sales decreased 3.8 percent in Q1, with international retail sales down 3.3 percent and U.S. retail sales down 4.2 percent year on year.

Struggling with falling demand for motorcycles, Harley-Davidson has vowed to build the next generation of riders. The company's strategic objectives through 2027 are to build 2 million new riders in the Unite States, grow international business to 50 percent of annual volume, launch 100 new high impact motorcycles and do so profitably and sustainably.

U.S. President Donald Trump, in a tweet on Tuesday morning, blamed Harley-Davidson's drop in international sales on foreign tariffs.

"Harley Davidson has struggled with tariffs with the EU, currently paying 31 percent. 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 percent in June of 2021," Trump wrote.

"So unfair to U.S. We will reciprocate!" he threatened.

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