Harley-Davidson Inc. said Tuesday that its net income surged as its financial-services unit swung to a profit, although revenue at the motorcycle maker remained flat.
Harley-Davidson’s second-quarter net income rose to $71.2 million, or 30 cents a share, from $19.8 million, or 8 cents a share, in the year-ago period.
Earnings from continuing operations rose to 59 cents a share from 14 cents.
Operating income from financial services came in at nearly $61 million, compared to a loss of $90.5 million in the year-ago period
Revenue for the three months ended June 27 remained flat at $1.14 billion.
Wall Street analysts expected the motorcycle maker to earn 42 cents a share on revenue of $1.12 billion, according to a survey by FactSet Research.
Harley-Davidson said it still expects to ship 201,000 to 212,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2010, down 5% to 10% from 2009.
“We are pleased with the continued moderation in the rate of decline of retail new Harley-Davidson motorcycle sales again in the second quarter,” said Chief Executive Keith Wandell. “At the same time, we continue to believe conditions will remain challenging this year for new motorcycle purchases and we will manage the business based on that expectation, with a continued strong focus on managing supply in line with demand.”
The Milwaukee-based company also said it is beginning negotiations on new labor agreements to take effect after current contracts run out in April 2012.
