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(Reuters) -Harley-Davidson Inc reported a rise in profit in the second quarter on Thursday, beating analyst estimates and sending shares up 5% in pre-market trading, despite a two-week production shutdown that suspended bike shipments in mid-May.
The Milwaukee-based company reported a net profit of $215.8 million, or $1.46 per share, higher than analysts’ expectations of $1.07 per share, according to Refinitiv data.
Executives said lower operating expenses and lower European Union tariffs on steel and aluminum were able to offset the impact of suspended production at manufacturing plants in Wisconsin and Pennsylvania that were due to a regulatory compliance issue at a third-party parts supplier.
Macroeconomic conditions, supply chain bottlenecks, and inflationary pressures have forced manufacturers including Harley to raise prices to help offset raw material and logistics costs, testing consumer spending power.
Sales of motorcycles and related products fell about 5% to $1.27 billion in the second quarter due to the production shutdown and lack of available parts, and total revenue fell 4% to about $1.47 billion. Even so, the motorcycle maker said strong demand for leisure activities after pandemic lockdowns has kept orders strong.
The company re-affirmed its full-year revenue growth outlook of 5% to 10% for motorcycle units and operating income margin of 11% to 12%.
“Now with the suspension being behind us, we are fully focused on mitigating the impacts of the volume loss,” said Chief Executive Jochen Zeitz in a statement.
