Harley-Davidson’s first-quarter profit jumped 44 percent with 26 percent increase in U.S. sales. According to Businessweek, the jump in profit and sales of Harley motorcycles is the result of improved economic conditions. I would add that the increase in sales and profit in the motorcycle industry are a good sign for the economy.
Shares of Harley-Davidson rose by nearly 6 percent reaching $53.19 in midday trading. Investors haven’t seen such value for Harley shares since late 2007 just before the global economic crisis. Because Harley motorcycles are expensive with models going between $8,000 for basic and $30,000 for premium models, Harley-Davidson sales plummeted by double digits in a year since the economic crisis broke.
In the first-quarter of 2012, net income was $172 million, or 74 cents per share. In comparison, in the first-quarter of 2011, Harley-Davidson reported $119.3 million net income, or 51 cents per share.
This can really be a good sign that the recession is coming to an end. What better sign than spending in motorcycle industry, which relies mostly on disposable income.