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Added on the 12/08/2018 11:11:33 - Copyright : Wochit
WASHINGTON (Reuters) - President Donald Trump backed boycotting American motorcycle manufacturer Harley Davidson Inc (HOG.N) on Sunday, the latest salvo in a dispute between the company and Trump over tariffs on steel. The Wisconsin-based motorcycle manufacturer announced a plan earlier this year to move production of motorcycles for the European Union from the United States to its overseas facilities to avoid the tariffs imposed by the trading bloc in retaliation for Trump’s duties on steel and aluminum imports. Harley has forecast that the EU tariffs would cost the company about $30 million to $45 million for the remainder of 2018 and $90 million to $100 million on a full-year basis.
According to Business Insider, shares of Harley-Davidson are down 1.93%, after President Donald Trump backed a potential boycott of the manufacturer. Monday. The potential boycott comes as Harley-Davidson considers moving their production overseas due to the Trump administration’s economic policies and potential tariffs on the European Union. Even before the impact of any potential tariffs, the motorcycle marker’s Q2 earnings showed shipments fell 11.3%, versus a year ago.
Harley-Davidson's profit plunged as Presdient Donald Trump's tariffs hurt sales. The company is also contending with decreased demand as their core customer ages. The motorcycle manufacturer Harley-Davidson reported quarterly operating profits plunged almost 27% from a year ago as it contended with decreasing demand for its core product as well as the impact of tariffs from both the US and Europe. Operating earnings fell from $173 million to $108 million while revenues declined 12% to $1.2 billion.
Harley-Davidson plunged nearly 11% Tuesday after reporting quarterly earnings that fell short of analysts' expectations. The company said tariffs slammed fourth-quarter profitability. President Donald Trump attacked Harley-Davidson last summer after the company said it would shift production overseas. Shares of the motorcycle maker plunged nearly 11% in pre-market trading after the company reported fourth-quarter earnings that missed Wall Street expectations. Harley-Davidson reported adjusted earnings per share of $0.17 on revenue of $955.6 million, missing the $0.29 and $1.05 billion that analysts surveyed by Bloomberg were expecting.
Reuters reports that Harley-Davidson Inc reported its steepest decline in domestic sales in eight years on Tuesday. The company warned that motorcycle shipments for the year will be at the lower end of its forecast as it faces higher tariff-related costs. Milwaukee-based Harley’s shares reversed course and were down 5 percent. It gave up premarket gains after company the recorded its best quarterly profit in two years. Chief Financial Officer John Olin said on a conference call with analysts, “We expect U.S. industry to remain challenged into 2019 and will continue to proactively address the weak U.S. industry." Harley’s demographic challenges in the domestic market are well documented. In addition, President Donald Trump called to boycott the motorcycle manufacturer for its decision to move production for European markets overseas. It's assumed this has only compounded the company’s troubles.
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