New York: Harley-Davidson Inc. on Tuesday reported a decline in third-quarter profit on lower sales and said it will cut costs. Its shares rose 9 percent.
The motorcycle maker's profit fell 18.7 percent to $114.1 million, or 64 cents per share. Revenue fell 4.3 percent to $1.09 billion. The profit results exceeded Wall Street expectations.
The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 63 cents per share. But, revenue fell short, with eleven analysts surveyed by Zacks expecting $1.11 billion.
The Milwaukee-based company cited weak U.S. sales and said market share was essentially flat. "We continue to effectively navigate a fiercely competitive environment and an ongoing weak U.S. industry," said President and CEO Matt Levatich. Levatich said the company expects its 2017 lineup of motorcycles to drive growth for the remainder of 2016.
Still, the company is planning to cut costs during the fourth quarter because of a slowdown in industry growth. It said it would "streamline" operations but did not specify how many jobs it would cut in a reorganization. Harley-Davidson shares rose $4.49 to $54.19. The stock is down 2.2 percent in the last 12 months.