By Gabrielle Coppola | Bloomberg News

Harley-Davidson broke even in the last quarter of a year in which the struggling American icon got caught up in President Donald Trump’s trade wars. The results sent the motorcycle maker’s shares lower in early trading.

Earnings per share on a GAAP basis was zero in the fourth quarter, the Milwaukee-based manufacturer said in a statement Tuesday. Excluding restructuring and tariff costs, profit was 17 cents a share, missing analysts’ average estimate for 29 cents.

Key Insights

Harley has more than tariffs to blame: U.S. retail sales tumbled 10 percent in the three months ended in December, the eighth consecutive quarterly drop. The company is having trouble attracting younger riders and is planning to offer cheaper bikes to reach new customers.

Retail demand dropped in Europe and Asia, sending worldwide sales down 6.7 percent. CEO Matt Levatich unveiled a turnaround plan in July that calls for 50 percent of sales to come from outside the U.S. by 2027.

Harley said in June it would move some U.S. production overseas to sidestep EU tariffs that jumped to 31 percent, from 6 percent. That drew the ire of Trump, who said he’d back a boycott of the company’s bikes.

Levatich is introducing as many as five electric models, including lightweight, urban bikes to target growth in Europe and India. Analysts think demand for Harley’s first electric motorcycle, called LiveWire, will be limited because of its $29,799 price tag.

Harley shares fell as much as 8.2 percent before the start of regular trading and were down 7.1 percent to $34 as of 7:55 a.m. The stock dropped 33 percent last year and touched an eight-year low on Dec. 24.

For 2019, Harley plans to ship between 217,000 and 220,000 motorcycles. The midpoint of that forecast would be the lowest shipments for the company since 2010.

With assistance from Bloomberg’s Brandon Kochkodin and Karen Lin (Bloomberg Global Data).