According to The Wall Street Journal in an interview with Harley-Davidson executives in late October of last year, the motorcycle company said that they expect sales to remain weak throughout the new year as they await the results of their new growth strategy that is focused on bringing in new and younger riders.
Harley-Davidson is planning to release their fourth quarter and year-end earnings on Jan. 29, and it is on course to mark 2018 as the fourth straight year of lower sales in the U.S.
A contributing factor to the company’s earnings in the third quarter resulted in a $35 million charge related to a clutch recall on 238,300 motorcycles.
H-D is still on track to introduce 16 new motorcycles by 2022, including electric, racing-style sport bikes and touring models, with a predicted $1.5 billion added to the company’s revenue over five years.
The company mentioned that international tariffs could cost an estimated $120 million in 2019 based on European Union tariffs on U.S. built motorcycles exported to Europe.
H-D announced in June that they will move some production out of the U.S. to avoid the EU tariff, that was levied earlier last year in retaliation for U.S. tariffs on European steel and aluminum. The company expects tariffs to cost it $43 million to $48 million.
Harley-Davidson’s third-quarter results beat revenue and profit expectations with rising wholesale shipments of its higher-end motorcycles, which propelled a 17 percent increase in revenue during the quarter.