Well known U.S. based motorcycle maker Harley-Davidson had a little dip in its margin figures. The company faced a fall in its demand in the market also as its manufacturing cost risen and it turned as a low margin bikes. Harley suffered a drop of 2 percent to $45.63 in premarket trading.
The company said it expected to ship more motorcycles in the fourth quarter than it had a year earlier, and will allow its full shipment forecast of 2,41,000 to 2,46,000 bikes.
Market states that the demand of Harley’s motorcycle has now declined because of company’s loyal baby boomer customer base ages and sells off used vehicles due to health reasons. Now young riders prefer cheap bikes, used Harley, and thus the sales are moving down.
According to the reports shipment in the third quarter was ended on September 24th, 2017 with a slid of 14.3 percent while global retail sales from dealers to customers fell by 6.9 percent. Harley’s primary market is the United States and that too fell with a figure of 8.1 percent.
As according to Consensus Metrix, analysts have expected a U.S retail drop of 5.6 percent during the common retail fall of 3.2 percent.
Operating margin showcased an unexpected fall of 8 points to 2 percent in the third quarter. The company shipped 23.6 percent more mid-priced cruiser motorcycles after their launch if newer versions of these bikes with the Milwaukee-Eight engine in August.
The overall drop figures are $68.2 million or 40 cents per share in the third quarter from $114.1 million or 64 cents per share as compared to a year earlier.