MILWAUKEE- Harley Davidson continues to grow its revenue, but supply chain issues & a spike in inflation aren’t helping things.
The company reporting a 5% increase in revenue during the 1st quarter of this year despite posting a 14% drop in net income.
Harley Chief Financial Officer Gina Goetter says the dip in net income can be directly traced back to issues with the global supply chain and semiconductor shortage.
“March was definitely worse than earlier in the quarter and this really had everything to do with our chip supply and how that impacted our production as we moved through the balance of the first quarter,” Goetter said.
“In terms of supply chain, Q1 was very similar to what we saw on the back half of last year,” Goetter added. “We do see some improvements in chips in the back half of the year but we do expect that supplier volatility will remain.”
According to Harley, net income was $223 million compared with $259 million the year prior. Overall revenue was nearly $1.5 billion this year when compared to $1.42 billion last year.
When it comes to motorcycle sales, North American numbers declined by roughly 1,500 units while sales rose 28% in Europe, the Middle East & Africa and 16% in the Asia-Pacific region.