Harley-Davidson 3rd Quarter Earnings And Retail Motorcycle Sales Rise Sharply. Sales Rise 15.5% Worldwide, 20.1% in the U.S.

cyril-huze-harley-stock6This morning October 22, 2013 before Wall Street opening, Harley-Davidson, Inc. (NYSE: HOG) announced its 3rd quarter earnings and dealer new motorcycle sales.Sales rose sharply in the third quarter of 2013, compared to the year-ago period. Worldwide retail sales of new Harley-Davidson motorcycles increased 15.5% in the quarter, including a 20.1% increase in the U.S., compared to last year’s third quarter. Diluted earnings per share increased 23.7% to $0.73, primarily on strong operating results in the motorcycles segment, including higher motorcycle shipments and gains in plant operating efficiencies, compared to the year-ago period. Third-quarter net income was $162.7 million on consolidated revenue of $1.34 billion, compared to net income of $134.0 million on consolidated revenue of $1.25 billion in the year-ago period. Through nine months, Harley-Davidson net income was $658.6 million on consolidated revenue of $4.71 billion, compared to net income of $553.3 million on consolidated revenue of $4.41 billion in the year-ago period. Nine-month 2013 diluted earnings per share were $2.93, up 22.1% compared to $2.40 in the year-ago period.

“Harley-Davidson had a great third quarter, with strong financial performance and retail sales growth,” said Keith Wandell, Chairman, President and Chief Executive Officer of Harley-Davidson, Inc. “Rider response to the 2014 motorcycles we introduced August 18 was extremely positive. In fact, initial retail sales of the new Project Rushmore motorcycles sparked the largest year-over-year new model year sales increase in two decades. We also capped our year-long 110th Anniversary celebration in late August when throngs of riders joined us in Milwaukee from around the world for a huge three-day party like only Harley-Davidson can throw. “Everyone at Harley-Davidson is proud of our accomplishments and results so far this year, as we continue to see the benefits of our manufacturing, product development and retail strategies. Our employees, dealers and suppliers come to work every day with a relentless focus on providing our customers a great experience,” Wandell said.

cyril-huze-harley-stock5Retail Harley-Davidson Motorcycle Sales:

Dealers worldwide sold 70,517 new Harley-Davidson motorcycles in the third quarter of 2013, compared to 61,053 motorcycles in the year-ago quarter. In the U.S., dealers sold 48,529 new Harley-Davidson motorcycles in the quarter, up 20.1%, compared to sales of 40,402 motorcycles in the year-ago period. In international markets, dealers sold 21,988 new Harley-Davidson motorcycles during the third quarter, up 6.5% compared to 20,651 motorcycles in the year-ago period, with unit sales up 10.0% in the Asia Pacific region, 1.6% in the EMEA region, 15.6% in the Latin America region, and 7.0% in Canada. Retail sales were driven by strong double-digit growth in the sale of touring motorcycles following the third-quarter launch of the Company’s Project Rushmore line of revamped motorcycles.

Through nine months, dealers sold 214,964 new Harley-Davidson motorcycles worldwide, compared to 206,444 motorcycles in the year-ago period, with retail unit sales up 4.1% in the U.S., 11.3% in the Asia Pacific region, 20.1% in the Latin America region and 3.7% in Canada, and down 2.2% in the EMEA region, compared to the first nine months of 2012.

Harley-Davidson Motorcycles and Related Products Segment Results:

Third-Quarter Results: Operating income from motorcycles and related products grew 21.2% to $175.5 million in the third quarter of 2013, compared to operating income of $144.8 million in the year-ago period. Operating income in the quarter benefited from higher motorcycle shipments, higher gross margin and lower restructuring expense, compared to the prior-year period. Revenue from motorcycles grew 10.7% to $857.0 million, compared to revenue of $774.0 million in the year-ago period. The Company shipped 54,025 motorcycles to dealers and distributors worldwide during the quarter, in line with shipment guidance and a 2.3% increase compared to shipments of 52,793 motorcycles in the year-ago period.

Revenue from motorcycle parts and accessories was $250.2 million during the quarter, up 7.0%, and revenue from general merchandise, which includes MotorClothes® apparel and accessories, was $66.1 million, down 12.6%, compared to the year-ago period.

Gross margin was 35.3% in the third quarter of 2013, compared to 34.7% in the third quarter of 2012. Third-quarter operating margin from motorcycles and related products was 14.9%, compared to operating margin of 13.3% in last year’s third quarter. Nine-Month Results: Through nine months the Company shipped 213,853 motorcycles to dealers and distributors worldwide, a 6.6% increase compared to the year-ago period. Nine-month revenue from motorcycles grew 9.8% to $3.29 billion, revenue from parts and accessories increased 0.8% to $703.8 million and revenue from general merchandise decreased 2.4% to $220.0 million, compared to the first nine months of 2012. Gross margin through nine months was 36.4% and operating margin was 19.2%, compared to 35.6% and 16.8% respectively in the year-ago period.

Financial Services Segment Results:

Operating income from financial services was $76.1 million in the third quarter of 2013, a 5.1% increase compared to operating income of $72.4 million in last year’s third quarter. Financial services results reflect higher net interest income. Through nine months, operating income from financial services was $221.8 million, compared to operating income of $221.7 million through nine months in 2012.

Guidance:

Harley-Davidson continues to expect to ship 259,000 to 264,000 motorcycles to dealers and distributors worldwide in 2013. The Company continues to expect full-year 2013 gross margin of 35.25% to 36.25%.  The Company also continues to expect capital expenditures of $200 million to $220 million in 2013.

Zipper's

19 Responses to “Harley-Davidson 3rd Quarter Earnings And Retail Motorcycle Sales Rise Sharply. Sales Rise 15.5% Worldwide, 20.1% in the U.S.”


  1. 1 P. Hamilton Oct 22nd, 2013 at 9:12 am

    Congrats Harley, but your 4th quarter may be very disappointing with your huge recall.

  2. 2 Shifter Oct 22nd, 2013 at 9:54 am

    Bravo HD.

  3. 3 Terence Tory Oct 22nd, 2013 at 10:06 am

    I’d like to know the non-motorcycle related products percentage of overall profit and its own amount of profit.H-D T shirts for cats,shield and bar Elvis toilet roll holders and the like.A H-D T shirt or a table lamp is my loose definition of “non-motorcycle related product”.

  4. 4 BobS Oct 22nd, 2013 at 11:13 am

    I guess now Harley can afford to give all those temp workers permanent jobs with pay huh?

  5. 5 Mr Dick Oct 22nd, 2013 at 12:57 pm

    Too bad HD can’t get it’s Canadian importer, Deeley, to stop gouging the crap out of it’s customers.Any other power sports maker has rebates, etc. to at least try to bring prices close to those in the U.S., not Deeley. Sales would be even higher if this certain country wasn’t being hosed.

  6. 6 DEDHED Oct 22nd, 2013 at 1:14 pm

    BobS: Why? Since there apparently isnt enough work for them full time, and being a very seasonal business, HD needs the flexibility.

  7. 7 Mike M Oct 22nd, 2013 at 1:35 pm

    I just don’t understand the d-bags whos first comment is about t-shirts etc. Is it somehow honorable to ignore potential revenue? If people want t-shirts and motorcycles and you don’t have t-shirts available you are an idiot. Good for Harley.

  8. 8 BobS Oct 22nd, 2013 at 2:21 pm

    DEHED, Sorry but I’ve followed them closely. Wandell didn’t lay off 700 full time workers in York because he didn’t have enough work for them. He laid them off so he could rehire them as temps at half pay, no benefits, for the same amount of work. Same story in Milwaukee. 125 IT employees all laid off because the IT department was being outsourced. But not to worry because the Indian contractor he was outsourcing those jobs to agreed to open a Milwaukee office. Except these jobs now paid half as much with no benefits. Funny thing, 125 H1B visas to bring 125 Indians over to Milwaukee because these jobs “couldn’t” be filled.
    So your statement, “apparently there isn’t enough work” is flat out false. All the work not only kept being done, but with this reported increase in sales there’s even more of it. Only now we have 825 American families and 125 new Indian families needing food stamps all so Wandell can get a 3 million dollar bonus on top of his 5 million dollar salary and one Indian contractor has 125 more indentured servants.

  9. 9 Terence Tory Oct 22nd, 2013 at 3:33 pm

    BobS,The Indians working for H-D are probably relatively temporary (not making a cheap joke here,by the way.).I say they are there to get training which will help The Motor Company become a real world player and motorcycle assembler.A competent and professional H-D facility operating in India will not do anyone any harm in the long run.

    The food stamps and benefits given in a bubble robber-baron economy is a dead issue.The middle class is over,Jack.How the distribution of wealth became more extreme than Tzarist Russia in a free enterprise country holding all the cards of luck is beyond my understanding.Read the works of Karl Marx:the smart guys in Wall Street have (they have,honestly).

  10. 10 takehikes Oct 22nd, 2013 at 4:57 pm

    Not sure who would or could buy any of their offerings beyond the Sporty. After that its fat overpriced pigs. Before you flame me I have owned a bunch of HD’s and own one now……but going forward I seriously doubt it. The true value versus perceived “heritage” is just BS…not a drop of heritage in them and I haven’t a doubt they make more licensing products than they do building bikes.
    As for India…you go there and hire there and design there and build there….pretty sure that’s what the Japanese have done here by the way.

  11. 11 Highrider Oct 22nd, 2013 at 7:36 pm

    Terence Wandell comes from Johnson Controls, who also brings in worker from India, rather than hire and train US workers, ( get this, even for working on military and government projects)

    It is a sad fact that people who support politicians who would rather give them free food stamps, Obama phones , disability insurance * even when they aren’t disabled) acceptable unemployment rates
    Rather than ask / demand jobs which pay good.
    Part time may be acceptable, but not the way HD did it nor how JCI does it. and I assume many other firms

    Kind of like that many Americans are like the frog in the pot.

    Just sad.

    But cheers for more Sales, we need that

  12. 12 Mike Greenwald Oct 23rd, 2013 at 12:47 pm

    Jeff,
    Where and how may I make a donation?
    Mike

  13. 13 Olive Oil Oct 23rd, 2013 at 2:29 pm

    Mr Dick there are two owners of Deely imports. One of them is on the board of directors for HD Milwaukee. They are skimming canadian riders from both ends , coming in and going out.

  14. 14 Terence Tory Oct 23rd, 2013 at 3:52 pm

    Highrider.Money is fluid,labor is fluid:that is the world we live in and there is no going back.Redneck prosperity was destroyed deliberately over sixty year period,and now the robber barons will finish off the middle class.

    I employed an Indian engineer years ago.Great guy,hard wording,sober and not sketchy on Mondays (didn’t drink),healthy and alert (vegetarian diet),and had a good Indian education and attitude.He did not watch the clock and have a head full of NASCAR or Monday night football while producing for me.He was focused on the job.

    You do realise that people in this country blame the victim and their thoughts swirl and are mirrored in a dystopian Mobius negative feedback loop where every issue is distorted and upside down like a carny mirror.Health=Bad , Greed=Good , A System of stable Govt=Oppression ,Food stamps that feed kids : Bad .

  15. 15 Mr Dick Oct 23rd, 2013 at 4:33 pm

    Olive Oil, do you live in Canada? Or am I the only one on here? If you are Canadian, you must feel my pain! I’m thinking of upgrading my ’10 CVO Ultra, but when I see the new
    Limited for $5400.00 less in the states I just shake my head.

  16. 16 BobS Oct 23rd, 2013 at 4:36 pm

    Terence, they (the Indian immigrants) may or may not be temps. But they’re not Harley workers. The point was Wandell shit canned the entire IT department and outsourced it to a company known for offering high tech jobs at very low wages. The American workers won’t take the jobs which allows him to get H1B visas to bring more immigrants in to fill the tech jobs. Of course the same company (Infotech, basically one guy) loans the immigrants the money to get here and does their paperwork for them so at the same time he’s taking American’s jobs away he’s also creating a class of indentured servants.

  17. 17 Terence Tory Oct 23rd, 2013 at 5:41 pm

    “Work for H-D” = “Harley worker”

    Comments from a nation “build by immigrants”,hmmm?. The term “Americans jobs” has been obsolete for decades in a globalized free world trade market.People vote for the society they want to live in every time they buy the cheapest option from the other side of the planet.

    History is so inconvenient.

    I’m not a fanboy of Wobblin’Wandell the Wide-Glide wannabee,but a business needs constant change to survive.

  18. 18 Blackmax Oct 23rd, 2013 at 5:53 pm

    Trying to make profits while you can & however you can
    The clock is ticking

  19. 19 Olive Oil Oct 23rd, 2013 at 5:55 pm

    Mr Dick yes Canadian and know all about the Deeley monopoly in this country. It has been a stranglehold on Canadian bikers since Trev days. Old Trev had his own helicopter and drove a Rolls. He was a wonderful man but the canadian bikers have been taken to the cleaners for a very long time. Bought my first Harley from a dealership in USA. After that the powers at HD put a quick stop to that, threats of reducing their quota for the following year.

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