Harley-Davidson Inc. Extends Losses on Tuesday
Harley-Davidson Inc. (NYSE:HOG) is an American motorcycle manufacturer. Shares of Harley-Davidson were down 2.1% in early afternoon trading on March 6. The stock has dropped 12.9% in 2018 thus far.
The company has seen its stock face downward pressure since its fourth quarter and full-year results were released in January. Further damage has been done as the European Union has stepped up to threaten tariffs on American products in response to President Trump’s promise of steel and aluminum tariffs.
In its 2017 fourth quarter and full-year results Harley-Davidson reported mixed results. For the full-year diluted earnings per share dropped to $3.02 compared to $3.83 in 2016. Net income also declined to $521.8 million in comparison to $692.2 million in the prior year. Worldwide retail motorcycle sales were down 6.7% year over year and U.S. retail sales dropped 8.5%. The company is making a concerted effort to train new riders on a global level.
Last week European Commission president Jean-Claude Juncker vowed that the European Union would retaliate if President Trump refused to exclude allies from forthcoming tariffs. “We will put tariffs on Harley-Davidson, on bourbon and on blue jeans – Levi’s,” Juncker said in an interview on German television on March 2. Juncker vowed that Europe would formulate a more comprehensive response and a layout of proposed tariffs if Trump’s proposal is not altered.
Harley-Davidson will thus be facing a steep climb in 2018 as it vies to grow domestic and global retail sales. The company could be front and centre in a new trade war, which could put more downward pressure on its slipping stock.