HARLEY-DAVIDSON RESULTS SHOW CONTINUED IMPROVEMENT
MILWAUKEE, August 1, 2012 -- Harley-Davidson, Inc. (NYSE: HOG) reported continued increases in earnings and dealer new motorcycle sales for the second quarter of 2012.
Income from continuing operations was $247.3 million, or $1.07 per share, on consolidated revenue of $1.73 billion for the quarter, compared to income from continuing operations of $190.6 million, or $0.81 per share, on consolidated revenue of $1.51 billion in the year-ago quarter.
Retail sales of new Harley-Davidson motorcycles grew 2.8 percent worldwide in the quarter compared to the prior-year period, including an increase of 4.0 percent in unit sales in the U.S.
Through the first six months of 2012, Harley-Davidson income from continuing operations increased 35.3 percent to $419.3 million, or $1.81 per share, on consolidated revenue of $3.16 billion, compared to income from continuing operations in the year-ago period of $309.8 million, or $1.31 per share, on consolidated revenue of $2.73 billion.
"We continue to see the results of our focus on the effective implementation of our business strategy," said Keith Wandell, Chairman, President and Chief Executive Officer. "Harley-Davidson's strategy provides the roadmap for success over the long-term through exceptional product development, manufacturing and retail capabilities. We're working hard every day to unleash the full potential of Harley-Davidson and our iconic brand, and our employees, dealers and suppliers are doing a truly outstanding job."
At the end of the second quarter, Harley-Davidson began implementation of its ERP production and planning system at the Company's vehicle operations in York, Pa. "The launch of ERP at York has gone very well. We are on plan and everyone involved deserves tremendous credit," said Wandell. "The implementation of the ERP system at York supports greater manufacturing flexibility, which we believe will allow us to be even more responsive to customers over the coming years."
Retail Harley-Davidson Motorcycle Sales
On a worldwide basis, dealers sold 85,714 new Harley-Davidson motorcycles in the second quarter of 2012, a 2.8 percent increase compared to 83,396 motorcycles sold in the year-ago period. Dealers sold 55,761 new Harley-Davidson motorcycles in the U.S., a 4.0 percent increase compared to the second quarter of 2011. In international markets, dealers sold 29,953 new Harley-Davidson motorcycles during the second quarter, a 0.5 percent increase compared to sales of 29,797 units in the year-ago period. Retail unit sales increased 10.0 percent and 37.9 percent in the Asia Pacific and Latin America regions respectively, and decreased 6.4 percent in the EMEA region during the quarter, compared to last year's second quarter.
Through six months, dealers sold 145,391 new Harley-Davidson motorcycles worldwide, a 9.3 percent increase from the year-ago period, with retail unit sales up 12.0 percent in the U.S., 16.5 percent in the Asia Pacific region and 58.0 percent in the Latin America region and down 4.5 percent in the EMEA region.
"We're pleased with the overall performance at retail during the first half, including continued growth in the second quarter," said Wandell. "As expected, retail sales moderated in the second quarter due to an unusually warm early spring in the U.S. that pulled some sales forward into the first quarter.
"We continue to remain cautious in our expectations for retail sales globally in an environment of greater economic uncertainty, including in Europe where sales are clearly being affected by the challenging Eurozone economy," Wandell said.
Industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 7.9 percent in the first half of 2012 compared to last year's first half.