Harley-Davidson shares get their motor running

Harley-Davidson shares climbed the most in nine months after the motorcycle maker reported second-quarter profit that beat analysts' estimate and affirmed its full-year shipment forecast.

Earnings were $1.44 (€1.32) a share the Milwaukee-based company said in a statement on Tuesday. Harley said it still expects to ship 276,000 to 281,000 motorcycles for the year after cutting its outlook in April because the company didn’t want to match competitors’ steep discounts.

Harley shipped 85,170 bikes during the quarter, within its forecast range. The shares surged as much as 5 per cent to $57.66 in trading in New York. The stock fell 14 per cent this year up to Monday, as the Standard and Poor’s 500 Index gained 3.4 per cent.

Harley posted second-quarter sales of motorcycles and related products of $1.65 billion, missing the average estimate of $1.67 billion. "We've had a tough half with price discounting and competition in the motorcycle market," said Harley-Davidson CFO John Olin.

- Bloomberg