This post was originally published on this site
(Reuters) – Harley-Davidson Inc (NYSE:HOG) reported a drop in first-quarter profit, in line with Wall Street expectations as margins were squeezed by higher costs and chip shortages, while sales were boosted by global price increases.
Shares for the Milwaukee-based company were down 1.8 % in premarket trading.
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. Even so, Harley said it is seeing strong consumer demand for its bikes.
The global semiconductor shortage has not yet eased which has added to margin pressures – pushing the company to maintain its outlook for an already extended backlog order for bikes.
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.
The company price surcharges in global markets has helped offset production costs and boost sales. Revenue rose 5% to about $1.50 billion. Demand for bikes remain strong as motorcycles saw a slight uptick in revenue of $1.3 million from 1.2 million a year prior.
