Trump Tariffs Are Costing Harley-Davidson A Fortune

The Trump tariffs are wreaking havoc on Harley-Davidson’s financials, costing the company $1.4 billion in market cap alone.

Forbes reports:

The Westin

“Circle back to Trump’s comments when he met with Harley-Davidson in 2017. He said, ‘I think you’re going to even expand—I know your business is now doing very well.’ Nothing could be further from the truth as some manufacturing has been moved overseas, revenue and profits have declined, and the company’s market cap has fallen almost 20%.

Between the first half of 2018 and the first half of this year Harley-Davidson has seen its revenue, earnings and valuation metrics all fall. The declines may not be totally attributed to Trump’s tariffs and the EU’s reaction, but they probably accounted for a large portion of the reductions.

Revenue

  • First Half 2018: $3.26 billion
  • First Half 2019: $3.02 billion, down $238 million or 7.3%

Gross Margin

  • First Half 2018: 42.2%
  • First Half 2019: 39.4%, down 2.8% or 280 basis points

Operating Income

  • First Half 2018: $560 million
  • First Half 2019: $423 million, down $137 million or 24.5%

Net Income

  • First Half 2018: $417 million
  • First Half 2019: $324 million, down $93 million or 22.3%

Market Cap

  • First Half 2018: $7.1 billion
  • First Half 2019: $5.7 billion, down $1.4 billion or 19.2%”

For the full story, visit Forbes here.

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