Harley-Davidson offloads loans worth $5 bln; tariffs hit second-quarter profit
However, shares of the company rose nearly 20% after the company said that it would offload loans from its financial unit to KKR (KKR.N), opens new tab and PIMCO valued at over $5 billion.
Leisure vehicle demand has been on a decline in the U.S., with consumers rethinking non-essential purchases in an uncertain economy.
Harley's sales have also taken a hit over the years as its bikes struggle to resonate with younger riders, who are looking for fuel efficient models instead with modern safety features.
"Given that the global tariff and business outlook especially for discretionary product purchases remains uncertain, we continue to withhold our full year HDMC (Harley Davidson Motorcycle Company) 2025 financial outlook," Harley-Davidson said.
Between February and now, close to 100 U.S. companies have either withdrawn or cut their guidance as uncertainty over tariffs throws financial planning out of gear, with most of them from the consumer and automotive and transportation sectors, according to Reuters calculations.
Harley-Davidson's profit fell to $108 million, or 88 cents per share, in the second quarter from $218 million, or $1.63 per share, a year earlier.
Analysts on average had expected a profit of 96 cents per share, according to data compiled by LSEG.
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