As of today the Harley-Davidson Motorcycle company has had it’s stock rise 10%. This happened shortly after a sales report that stated the company had it’s first rise in annual sales of the bike for the first time in 5 years.
Harley dealers across the U.S. experienced a 7.5% increase in sales this 2nd Q compared to last years 2nd Q. On the International scale sales climbed by a total of 6%.
The strong sales helped the Milwaukee-based company boost its second-quarter profit nearly 40% from a year earlier to $190.6 million, or 81 cents per share, as overall revenues rose 18% to $1.34 billion.
The results blew past Wall Street’s expectations. Analysts surveyed by Thomson Reuters were looking for the company to earn 71 cents per share for the quarter, on revenue of $1.26 billion.
Harley-Davidson also lifted its guidance for the year. The company expects to ship up to 235,000 new motorcycles to distributors worldwide this year, up 12% from 2010. At the end of the first quarter, Harley’s most optimistic forecast called for an 8% rise in shipments for the year.
While this all seems great at first sight many people have speculated that Harley Davidson’s increase in profit has resulted not only from an increase in sales but also a cut in it’s costs in employee salaries as well as laying off thousands of it’s workers.
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