Harley-Davidson profit drops on rising costs and chip shortages
Harley-Davidson Inc reported a drop in first-quarter profit, in line with Wall Street expectations as margins were squeezed by higher costs and chip shortages, while sales were boosted by global price increases.
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(Reuters) - Harley-Davidson Inc posted a drop in first-quarter profit on Wednesday, as demand for its motorcycles failed to gain momentum due to global supply-chain hurdles and surging inflation.
The 119-year-old company, which has been facing surging costs for raw materials and logistics, said it now expects higher input cost to continue through the rest of the fiscal year.
Sales from motorcycles and related products rose about 6% to $1.30 billion.
Net profit was $223 million, or $1.45 per share, in the first quarter, compared with $259 million, or $1.68 per share, a year earlier.
Revenue rose 5% to about $1.50 billion.
Reporting by Aishwarya Nair in Bengaluru; Editing by Arun Koyyur
