Harley-Davidson reported a 30 percent boost in net profit for the second quarter of this year. Some think the high cost of fuel is driving those new sales. Are you currently trying to purchase or sell a new or used SUV? If this describes you, have a look at the inventory at Gus Johnson Ford! Want to know find out more about Gus Johnson Ford? Have a look at Gus Johnson Ford.
Harley-Davidson net profit increases
Last year’s reported net income for the second quarter of Harley-Davidson showed $190.6 million. This year’s second quarter reported $247.3 million, a huge increase.
Analysts were expecting more though. They forecasted $1.64 billion revenue for the year. The second quarter for last year was only $1.34 billion and this year was at $1.57 billion.
The warm winter is to blame for the low revenue, according to Keith Wandell, chairman and CEO of Harley-Davidson:
"We're pleased with the overall performance at retail during the first half, including continued growth in the second quarter. As expected, retail sales moderated in the second quarter due to an unusually warm early spring in the U.S. that pulled some sales forward into the first quarter."
Broadening its appeal
Since 2009, Harley-Davidson has been working to steer its long-term sales up by streamlining operations, cutting costs and expanding its industry outside of the United States. It has also worked to attract women, minority and younger buyers that do not look anything like the stereotyped burly, bearded biker that most associate with the motorbike make.
Appeal of bikes
Financial data firm Sageworks announced a 16 percent increase in motorbike and ATV sales. That means that Harley-Davidson is not the only business appreciating the boost in business.
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It is much cheaper to use a motorbike than an automobile or truck based solely on the belief that gasoline costs are up and fuel efficiency is better in a bike. The gas-guzzling motorbike still gets 44 to 59 mpg, which means it is always better to ride a bike. There are a lot of other reasons for the appeal of bikes also.
Another factor may be, as alluded to by Waddell, the unseasonably warm winter of 2012. Whatever the reason, however, the legendary motorcycle-maker is not taking it for granted and resting on its laurels.
According to Wandell:
"We continue to remain cautious in our expectations for retail sales globally in an environment of greater economic uncertainty, including in Europe where sales are clearly being affected by the challenging Eurozone economy."
Sources
Denver Post
Wall Street Journal
Daily Finance
Harley-Davidson net income revs up in second quarter
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