Harley-Davidson Inc. delivered on its strategy to increase profit by curbing motorcycle production and costs.
The manufacturer reported a 39% increase in third-quarter profit on Tuesday despite selling 8% fewer bikes than a year earlier. Chief Executive Jochen Zeitz is scaling back overseas expansions, eliminating slow-selling models and lowering inventory at bike dealers to sharpen Harley’s focus on best-selling models in markets with the strongest sales.
The company’s shares rose 26% to $36.57.
The Milwaukee-based company is delaying or abandoning models aimed at younger riders and customers overseas. Harley said it will exit 39 markets overseas with low sales and rely on distributors to sell its motorcycles in 17 countries, including in India, where the company is closing its assembly plant.
Harley said India’s Hero MotoCorp Ltd. will sell and service Harley’s bikes in India. Under a licensing agreement with Hero, Harley will allow Hero to develop and sell motorcycles under the Harley-Davidson brand.
