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Tuesday, April 23, 2019

Trade war pain gets real: Harley Davidson cites EU and China tariffs for weak earnings

On Tuesday, Harley Davidson posted a drop in first-quarter sales and earnings. It cited tariffs between the United States, the European Union and China as part of the reason for its weak performance.
Both the European Union and China retaliated against US-imposed tariffs by adding their own levies.
In response, President Donald Trump tweeted Tuesday that the tariffs Harley had to face were unfair and that the United States would reciprocate.
Last year, the company vowed to move some of its production outside the United States to mitigate the cost of tariffs, especially when selling to foreign customers. The move earned the company criticism from Trump, who encouraged people to boycott Harley.
Notwithstanding the noise around its results, Harley exceeded analysts' expectations for an even weaker quarter.
Revenue stood at $1.4 billion, while net income between January and March was $127.9 million.
The company also cited weak US retail sales as reason for the lower sales number in the first quarter.
Correction: An earlier version of this story incorrectly stated where Harley Davidson makes motorcycles.

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