Harley-Davidson, Inc. (NYSE: HOG) second-quarter 2013 diluted earnings per share increased 13.1% on higher motorcycle shipments and continued gains in operating efficiencies, compared to the year-ago period. Second-quarter net income was $271.7 million on consolidated revenue of $1.79 billion, compared to net income of $247.3 million on consolidated revenue of $1.73 billion in the year-ago period. Second-quarter 2013 diluted earnings per share were $1.21, compared to $1.07 in the year-ago quarter.
“During the second quarter, we completed our first year of seasonal surge production at York with great success. We also surpassed a milestone for international dealership growth. With the opening of a dealership in Salvador, Brazil on June 29th, we have added 104 dealerships outside the U.S. since late 2009, achieving our goal to add 100 to 150 international dealerships by the end of 2014,” Wandell said.
Retail Harley-Davidson Motorcycle Sales.
Dealers worldwide sold 90,193 new Harley-Davidson motorcycles in the second quarter of 2013, compared to 85,714 motorcycles in the year-ago quarter. In the U.S., dealers sold 58,241 new Harley-Davidson motorcycles in the quarter, up 4.4% compared to the year-ago period. In international markets, dealers sold 31,952 new Harley-Davidson motorcycles during the second quarter, compared to 29,953 motorcycles in the year-ago period, with unit sales up 12.3% in the Asia Pacific region, 1.0% in the EMEA region, 39.2% in the Latin America region, and 3.6% in Canada.
Through six months, dealers sold 144,447 new Harley-Davidson motorcycles worldwide, compared to 145,391 motorcycles in the year-ago period, with retail unit sales up 11.9% in the Asia Pacific region, 22.8% in the Latin America region and 2.4% in Canada, and down 2.7% in the U.S. and 3.6% in the EMEA region, compared to the first half of 2012. The Company believes first-half U.S. retail sales were adversely impacted by a prolonged and abnormally cool and wet spring in 2013, compared to an abnormally early and warm spring in 2012.
Harley-Davidson Motorcycles and Related Products Segment Results
Second-Quarter Results: Operating income from motorcycles and related products grew 15.5% to $357.7 million in the second quarter of 2013, compared to operating income of $309.6 million in the year-ago period. Operating income in the quarter benefited from higher motorcycle shipments as the Company continued the implementation of seasonal surge motorcycle production, higher gross margin and lower restructuring expense, compared to the prior-year period.
Revenue from motorcycle parts and accessories was $269.6 million during the quarter, up 1.5%, and revenue from general merchandise, which includes MotorClothes® apparel and accessories, was $81.7 million, up 8.7%, compared to the year-ago period. Gross margin was 36.9% in the second quarter of 2013, compared to 35.9% in the second quarter of 2012.