>> After weeks of nail-biting over the impact of rising costs due to tariffs on imported steel and aluminum and resulting penalties on his motorcycle exports, Harley-Davidson investors are breathing a big sigh of relief. The iconic american motorcycle maker Tuesday not only beat earnings forecast but also predicts it will suffer less than earlier thought from the tariff war set off by President Trump.
I'm Conway Gibbons in New York, investors were so pleasantly surprised by the news that shares of Harley-Davidson have seen their biggest one-day surge in almost two years. Now investors were encouraged by other things as well. The bike maker is holding fast to its bike shipment target for the year.
Now that's seen as a sign of confidence in international demand, especially given the 25% tariffs being set on bikes in Europe. Now the Chief Financial Officer did address that, and said the company is doing all that it can to mitigate the higher cost from those tariffs. But Harley-Davidson still has to find a way to fix a down-slide in sales in the US.
Traditional customers are getting older, younger drivers aren't hopping on board, and it's getting squeezed by rivals offering deeper discounts. The American side of the business was so bad last year quarter, sales were down more than 6%. The executive team is rolling out a strategy aimed at fixing that problem next week.