Harley sees 37% rise in profit boosted by higher demand for popular bikes

Harley-Davidson Inc reported a near 37% rise in quarterly profit on Thursday, as a series of price hikes helped the motorcycle maker take advantage of steady demand for its popular models and cushion the impact of higher costs.
 

Shares of the Milwaukee-based manufacturer were up 1.8% at $37.5 in premarket trading.
 

Harley-Davidson has raised prices on its popular Trike, Cruiser and Touring models over the past two years to help offset higher raw material and logistics costs in the face of rising inflation.
 

The manufacturer also benefited from pent-up demand as COVID-exhausted Americans were eager to hit the roads on cars and motorcycles.
 

Sales from motorcycles and related products rose 21% to $1.56 billion
 

First-quarter global motorcycle shipments increased 14% ahead of the key riding season, the company said.
 

Net profit rose to $304 million, or $2.04 per share, in the first quarter from $222.5 million, or $1.45 per share, a year earlier.
 

Consolidated revenue rose 20% to $1.79 billion in the quarter ended March 31.
 

The 120-year-old manufacturer also reaffirmed its full-year outlook. The company is expecting revenue growth of 4% to 7% for the motorcycle unit and an operating income margin of 14.1% to 14.6% for the fiscal year.
 

(Reporting by Kannaki Deka in Bengaluru and Bianca Flowers in Chicago; Editing by Anil D'Silva)