Harley-Davidson Second Quarter Earnings Per Share Rise 32.1 Percent. New Motorcycle Sales Up 4% US, 2.8% Worldwide

This morning August 1, 2012 before financial markets opening, Harley-Davidson, Inc. (NYSE: HOG) reported continued increases in earnings and dealer new motorcycle sales for the second quarter of 2012. 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.

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. (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)

“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.

Because sales were particularly weak in Europe, where dealers sold just 14,639 motorcycles, 9% fewer than last year, H.O.G. stock was sharply down this Wednesday morning but recovered a little bit (-4%) this afternoon.

Six-Month Results: Through the first six months of 2012 the Company shipped 147,765 motorcycles to dealers and distributors, a 22.5 percent increase compared to the year-ago period. Revenue from motorcycles grew 20.6 percent to $2.22 billion through six months. First-half revenue from parts and accessories grew 10.7 percent to $464.6 million and revenue from general merchandise grew 10.5 percent to $149.7 million. Gross margin through six months was 35.9 percent and operating margin was 18.2 percent, compared to 34.1 percent and 14.4 percent respectively in last year’s first half.
Financial Services Segment Results

Guidance: Harley-Davidson continues to expect to ship 245,000 to 250,000 motorcycles to dealers and distributors worldwide in 2012, a five-to seven-percent increase from 2011. In the third quarter of 2012, the Company expects to ship 51,000 to 56,000 motorcycles, a decrease of 9.3 percent to 17.4 percent from the year-ago period. This is consistent with the Company’s previously announced plans for lower shipments in the third and fourth quarters of 2012 related to the implementation of ERP and surge production at York.

15 Responses to “Harley-Davidson Second Quarter Earnings Per Share Rise 32.1 Percent. New Motorcycle Sales Up 4% US, 2.8% Worldwide”

  1. 1 fuji Aug 1st, 2012 at 9:46 am

    Shares of Harley-Davidson (HOG) fall 10.4% despite the company beating the estimate of analysts with its Q2 report. Weak dealer sales and the company’s outlook for the rest of the year has traders edgy.

  2. 2 BobS Aug 1st, 2012 at 9:51 am

    Wow, earnings rise 32 percent! I guess now they will have to decide, hire the York and Milwaukee laid off workers back full time…or give the CEO a bigger bonus. Hmmm I wonder what they will do…

  3. 3 Nobody Aug 1st, 2012 at 10:50 am

    You know Bob, that was the first thought to hit me as well. Maybe they’ll surprise us and bring back the workers..

    …yes I know to not hold my breath..

  4. 4 Toby Aug 1st, 2012 at 11:26 am

    No new hires. Third and fourth quarter shipments expected to be much lower. Likely to be furloughs.

  5. 5 Rodent Aug 1st, 2012 at 11:37 am

    CEO will get huge bonus!

  6. 6 Dead Sled Aug 1st, 2012 at 2:59 pm

    They are selling the bikes they are making, why would they hire more workers? Clearly very few motorcyclists have owned businesses. Bonus for CEO – you bet, they are profitable in turbulent times (not so before he got there)

  7. 7 BobS Aug 1st, 2012 at 4:59 pm

    Dead Sled, I have owned more than one business before. A pretty nice one with about 20 employees going strong when everything went to crap after 9/11. I had to cut back on a lot of things, the first of which was my own salary. But at least now that we agree that Harley won’t hire any employees no matter how many millions the CEO makes…we might as well go back to making him pay some tax since he isn’t creating any jobs.

  8. 8 Mike Greenwald Aug 1st, 2012 at 6:00 pm

    Sounds like the t-shirt business is good.

  9. 9 Mark Aug 2nd, 2012 at 6:11 am

    Like most stats post the “recession” they don’t tell us how sales compare to, say 2007 or 2008, before everything went to hell. Got any comparable figures for 5 or 6 years ago Cyril?

  10. 10 fuji Aug 2nd, 2012 at 7:28 am

    Dead Sled
    Aug 1st, 2012 at 2:59 pm
    They are selling the bikes they are making,
    How do you know that for sure. Yes the dealer is paying for them so they are sold.
    Titled ?

  11. 11 Ric Aug 2nd, 2012 at 7:38 am

    Maybe they will start making the parts for our bikes in the USA again. I thought we were buying American made not American assembled. How about the over priced Motor clothes, $30 for a Tshirt made in Indonesia, 450 for an advertisement jacket made in Pakistan. Just some thoughts about where they could use the extra funds to make their customer base believe in them again.

  12. 12 deadwood1783 Aug 2nd, 2012 at 11:46 am

    Like it or not HD is a publicly traded company and yes Wandell has to anwer to Wall St. And any bonus he gets must be approved by the Board. Class warfare isn’t going to help the working man. If you want to make more money like Wandell go out and get the education and experience it takes to be hired to run a major corporation. Or start a business of your own and create the next “big thing”. Its tough to run a profitable operation in todays motorcycle marketplace. Just ask all those investors in the now basically defunct “chopper” industry. I’m not any particular fan of Wandell’s and I recognise the inequities between management and labor. But Keith was brought in to clean house and thats what he done. He’s made a lot of cuts I really hated to see happen, but they needed to happen. I say he’s done a good job at what he was hired to do. Run a profitable operation. And, for a motorcycle industry outsider, he’s done a stellar job. Don’t be jealous, just work harder or take more risks if you want more rewards.

  13. 13 BobS Aug 2nd, 2012 at 3:37 pm

    ” Don’t be jealous, just work harder or take more risks if you want more rewards.” Thank you for the advice. I was unaware all the laid off Harley workers were lazy bums. I feel better now knowing that had they worked hard they would not have been laid off, lost a house, lost their credit, lost the ability to take out a loan so they could start the next big thing…still not sure where a company that makes a 600 million dollar profit and a CEO that is compensated 8 million NEEDS to bankrupt 700 families to survive. By my math had they kept those 700 York workers on they “only” would have made about 560 million dollars and Wandell would have to “settle” for about 5 million…those poor babies, how could they ever get by on that? Class warfare isn’t coming from the bottom up, it’s coming from the top down.

  14. 14 Rick Lossner Aug 4th, 2012 at 7:34 am

    Bobs. Though in theory I agree with your last statement….if they were able to deliver product without those 700 people, then they weren’t needed. This is a business not a welfare program:(

  15. 15 Hark Aug 6th, 2012 at 8:39 am

    Got a letter this morning. There is a major shake up in HOG…Harley Owners Group. The area map for Regional Managers has changed from seven to two.

Comments are currently closed.
Cyril Huze