Harley posts lower profit on supply chaos, rising costs
2022.04.27 14:47
FILE PHOTO: Harley Davidson motorcycles are displayed for sale at a showroom in London, Britain, June 22 2018. REUTERS/Henry Nicholls
(Reuters) – Harley-Davidson Inc (NYSE:HOG) posted a drop in first-quarter profit on Wednesday, as demand for its motorcycles failed to gain momentum due to global supply-chain hurdles and surging inflation.
The 119-year-old company, which has been facing surging costs for raw materials and logistics, said it now expects higher input cost to continue through the rest of the fiscal year.
Sales from motorcycles and related products rose about 6% to $1.30 billion.
Net profit was $223 million, or $1.45 per share, in the first quarter, compared with $259 million, or $1.68 per share, a year earlier.
Revenue rose 5% to about $1.50 billion.
