Maybe the financial experts were right for a change.
In a time when most financial news from motorcycle manufacturers is doom and gloom here in North America, Harley-Davidson looks like they might have a bit of a turnaround going on, with sales growing both at home and abroad.
Harley’s U.S. sales were up 7.5 per cent in the U.S. and 5.6 per cent globally in this year’s second quarter, compared to last year’s second quarter. That’s the first year-over-year quarterly rise in new bike sales for the company since 2006. Through the first six months of 2011, bike sales were up 4.8 per cent globally for the company from the same period in 2011.
The reversal of the five-year slide brought other good news with it as well. Income from continuing operations, which includes sales of bikes and gear along with profit from financing sales, was up 36.8 per cent from 2010’s second quarter,, to $190.6 million.
What does all this mean, if you don’t own any Harley-Davidson stock? Well, it appears the company’s strategy seems to be working; whether or not you approve of the way they deal with their unions or the way they dumped their Buell lineup, they’ve managed to keep their head above water and stay profitable in a time when other manufacturers are taking a heavy beating in the North American market. Add increased overseas sales to that picture, and it looks as if Harley-Davidson should be doing business for a long time yet.