Harley shares surge 11% on strong profit

harley.png By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- Shares of Harley-Davidson soared about 11% Tuesday after the motorcycle maker posted better-than-expected earnings, boosted by a rebound in its finance unit.

The Milwaukee-based company posted a profit from continuing operations of $139.3 million, or 59 cents a share, beating the 41 cents expected by analysts surveyed by Thomson Reuters.

Retail sales fell during the quarter, but declines slowed from the prior four quarters. Operating income at Harley's financial services unit surged to $60.8 million, compared to a loss of $90.5 million in the same period a year ago.

On a day when the major indexes sank, shares of Harley (HOG, Fortune 500) jumped $2.70 to $26.31. It was up as much as 15%, at $27.15, before pulling back.

Tuesday's rally pushed Harley shares higher for 2010, up about 4.5%.  To top of page

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