“Motorsickle” manufacturer Harley Davidson Inc (NYSE:HOG) saw its shares coast downhill after a disappointing trading update.
The shares were off 4.8% at US$55.12 despite announcing an increase in fourth quarter earnings per share to US$0.27 from US$0.22 in the same period of the previous year.
The Street had been expecting earnings per share of 31 cents.
Consolidated revenue fell to US$1.11bn from US$1.18bn a year earlier.
Net income climbed to US$47.2mln from US$42.2mln the prior year.
"The global competitive environment remains intense, but our 2016 results demonstrate that our increased investments to drive demand and bring impactful new products to market are working," said Matt Levatich, president and chief executive officer of Harley-Davidson.
In the fourth quarter, worldwide retail sales of new Harley-Davidson motorcycles declined 0.5% year-on-year, with modest declines in some international markets partially offset by slight growth in the US.
For 2017, Harley-Davidson anticipates full-year motorcycle shipments to be flat or down modestly in comparison to 2016.
In the first quarter of 2017, Harley-Davidson expects to ship between 66,000 and 71,000 motorcycles.