Despite Shutdown, Harley-Davidson Profits for Q2 Are Over $200 Million
Even though Harley-Davidson had to shut down production for two weeks, the MoCo posted second quarter profits of $215.8 million.
Reuters recently reported that Harley-Davidson posted a profit in its second quarter (Q2). In fact, the Motor Company (MoCo) reflected an increase in shares by nearly 7%. That percentage increase marks Q2 profits of $215.8 million.
At an individual share level, that means $1.46 per share, a full $0.39 per share higher than analysts expected. That’s great news, considering the recent shutdown and market volatility that Harley-Davidson has had to manage.
Harley-Davidson profits were up despite having to close up production for two weeks
After facing a regulatory compliance problem, the Milwaukee motorcycle marque had to close its doors for two weeks. While that may not seem like much, two weeks of idle operations is difficult to contend with, even for a motorcycle manufacturing giant like Harley-Davidson. However, rather than a mandated shutdown, Harley-Davidson halted production out of “an abundance of caution,” says Jalopnik.
Which motorcycles were impacted by the Harley-Davidson shutdown?
Harley-Davidson halted production for gas-powered motorcycles. While Harley-Davidson didn’t cite a supply chain issue for the shutdown, the motorcycle marque did state that the focus of the shutdown pertained to a “third-party supplier.” That seems prudent, as checking an issue that could bring regulatory issues down the line prevents problems down the line. Of course, the issue with a gas-powered motorcycle shutdown is that only the Harley-Davidson-owned LiveWire EV motorcycles could operate as usual.
How did Harley-Davidson profit amid a shutdown?
According to Reuters, strong demand for Harley-Davidson’s products have kept profits up. “Demand was strong across the board, but available bikes in dealerships were the concern,” said Chief Executive Jochen Zeitz. Of course, despite the issues of keeping showrooms stocked, Harley-Davidson’s profits reflect a bright near future for the brand.
Photos: Harley-Davidson, LiveWire