Harley-Davidson posted a drop of almost a third in profits in the third quarter of the year because of supply disruptions.
Motorcycle shipments slowed as a technology upgrade at its largest plant caused disruptions to production. From July through September, Harley-Davidson’s net income fell to $134 million, from $183,6 million the same quarter a year ago. The motorcycle manufacturer is introducing a new production system at its plant in York, Pennsylvania, in order to boost efficiency and better respond to fluctuating market demand.
Harley-Davidson has spent the last few years streamlining its business to improve profitability. “A major piece of our restructuring work is behind us. We believe Harley-Davidson is on track to deliver growth through our strategy, with investments in new markets, new products and improved manufacturing and retail capabilities,” Harley-Davidson CEO Keith Wandell was quoted as saying by Financial Times.
Harley-Davidson sales in the U.S. fell 5.2 percent in the third quarter because of a limited availability of new motorcycles in July, August and early September. The company’s international sales rose 7.6 percent, offsetting the decline in its home market. Global motorcycle sales fell 1.3 per cent, while revenue generated by motorcycles and related products decreased 12 percent to $1.09 billion.