Harley-Davidson Inc. loses market share
Harley-Davidson Inc. continued to roll downhill in the second quarter of 2015. Sales of new motorcycles dropped in the United States and around the world, and profits were down 15.3 percent, the Milwaukee-based motorcycle-maker said Tuesday.
Net income also dropped for Harley (NYSE: HOG) in the quarter ending June 28, to $299.8 million, or $1.44 per share, compared with $354.2 million, or $1.62 per share in the second quarter of 2014.
Motorcycle sales worldwide were 88,931, down 1.4 percent compared to a year ago. U.S. sales of motorcycles also fell to 57,790, compared with 58,225 a year ago.
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The strong U.S. dollar, which allows Japanese and European competitors to cut their prices by nearly $3,000 per bike, have hurt Harley-Davidson throughout the year. The company held fast to its pricing, and reduced its overall sales estimates for the year. Instead of selling 282,000 to 287,000 heavyweight bikes worldwide, Harley now projects it will sell 276,000 to 281,000.
The competitive disadvantage on price has cut Harley’s market share about 4 percent in the U.S., according to Forbes, but it still sells more than half of the 601cc and larger motorcycles in the country.
“We are confident in the strength of our business and the strategies we have in place to maintain our industry leadership and grow our business over the long term,” said Matt Levatich, who replaced Keith Wandell as president and chief executive officer May 1. “Our singular focus on the customer through unrivaled products, unique experiences and our expanding dealer network is the bedrock we are building on to continue to grow our reach and impact with customers across the globe.”