Harley-Davidson Reports Fourth Quarter, Full-Year 2016 Results.

For the full-year 2016, worldwide Harley-Davidson retail motorcycle sales were down 1.6 percent compared to 2015. U.S. retail sales decreased 3.9 percent, partially offset by international growth of 2.3 percent.

In the fourth quarter, worldwide retail sales of new Harley-Davidson motorcycles declined 0.5 percent versus the prior year behind modest declines in some international markets partially offset by slight growth in the U.S.

Fourth quarter revenue from motorcycles and related products was down versus the prior year behind fewer motorcycle shipments. Operating margin as a percent of revenue increased in the quarter compared to the same period in 2015, resulting from lower SG&A.

“The global competitive environment remains intense, but our 2016 results demonstrate that our increased investments to drive demand and bring impactful new products to market are working,” said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc. “We are energized by our resolve to compete and win in the U.S. and in major international markets. Our market share performance gives us great confidence in the strength of our long-term strategy.”

During 2016, the company reported its best-ever retail sales results in Asia Pacific and EMEA. In the 601+cc motorcycle market, the company grew its number one market share position in the U.S. and grew market share in Europe. The company added 40 new dealer points internationally and reported that U.S. dealers trained more than 65,000 new riders through the Harley-Davidson Riding Academy. The company also launched its model year 2017 lineup of motorcycles, featuring the new, highly-acclaimed Milwaukee-Eight™ engine, and upgraded suspension, on all new Touring motorcycles.

“Our long-term strategy is all about growing ridership in the U.S., growing reach and impact internationally, and growing share and profit in every market we serve,” stated Levatich. “Our goal over the next 10 years is to build the next generation of Harley-Davidson riders worldwide.”

Guidance  
For 2017, Harley-Davidson anticipates full-year motorcycle shipments to be flat to down modestly in comparison to 2016. In the first quarter of 2017, Harley-Davidson expects to ship approximately 66,000 to 71,000 motorcycles.  Harley-Davidson expects full-year 2017 operating and gross margin as a percent of revenue to be approximately in line with 2016 and its full-year effective tax rate to be approximately 34.5 percent. The company anticipates 2017 capital expenditures of $200 million to $220 million.

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34 Responses to “Harley-Davidson Reports Fourth Quarter, Full-Year 2016 Results.”


  1. 1 tommy Jan 31st, 2017 at 11:05 am

    Tough market.

  2. 2 P. Hamilton Jan 31st, 2017 at 11:08 am

    With Trump, future is uncertain. Uncertainty is the enemy of discretionary purchases. Probably a worst year 2017.

  3. 3 Greeko Jan 31st, 2017 at 11:11 am

    If Trump provokes a trade war, be prepared for a Harley collapse.

  4. 4 Patrick Jan 31st, 2017 at 11:29 am

    We all have to worry, not only the motorcycle industry. Trump administration is going to do these evil things as they’ve done in the immigration area and perhaps some others.

  5. 5 Ralph Ruyner Jan 31st, 2017 at 11:46 am

    Not too good, not too bad.

  6. 6 Patrick B. Jan 31st, 2017 at 12:03 pm

    If Trump admin. brings more higher paying jobs to U.S., the average joe will have more discretionary income and that equals increased sales for HD. It may take until 2018 but I am optimistic if HD focuses attention back to the blue collar HD customer!

  7. 7 big doug Jan 31st, 2017 at 12:47 pm

    harley has just decided to not renew the franchise at the dealer I work at in new zealand.they have been a dealer for 25 plus years,so 14 people will lose there jobs,the problem I have with it is this shop was performing very well in all the departments the hd mantra is all about loyalty yet they show none to dealers and people who support there brand,this down the track will get them into further trouble.

  8. 8 James just another crazy kiwi Jan 31st, 2017 at 1:08 pm

    The Asia Pacific market is Aus/NZ and others and it is unlikely that there will be any trade wars within the five eyes. It is too early to see what your admimistration will do.
    Of the people that voted roughly 50% voted for Trump. The USA is so divisive now. The Idea is you get to vote again in four years in the mean time you get behind your country. I dont like our current Govt and I will vote appropriatley next election.But I dont scream and whinge like someone thats lost their blankey.
    It’s called democracy…………….suck it up

  9. 9 BobS Jan 31st, 2017 at 1:22 pm

    Trump’s a YUGE wild card that probably will do something stupid. If not Harley should have a better year now that Polaris pissed off their biggest fans.

  10. 10 PB Zappa Jan 31st, 2017 at 2:45 pm

    Unfortunately Mr B higher paying jobs are the Trumpoid minions pipe dream and a red herring/panacea / propaganda for the masses . If the Blatherskite places tariffs on them [ fill in the blank as to which them ] guaranteed they’ll do the same to us which will kill sales across the board . and with the EU UK China Japan all ganging up on us . Face facts . The late 50’s early 60’s are over so deal with it .. and come to grips with the reality of who and what the Blatherskite is . A self serving narcissist who’s only concern is himself .

    Phi Beta Zappa ( freak yer Greek baby )

  11. 11 SIGFREED Jan 31st, 2017 at 3:17 pm

    WTF – did I accidentally click the Clinton News Network’s site?

    How about this site remains dedicated to CUSTOM MOTORCYCLE NEWS – as its billboard claims…

  12. 12 John D Jan 31st, 2017 at 3:42 pm

    A third of the HD Dealers will be closed within 10 years & Trump will not be the reason. The Motor Factory will cause their own slow demise…….

  13. 13 Ralph Ruyner Jan 31st, 2017 at 4:47 pm

    John D. I disagree. In 10 years Harley will still be open for business and Trump will be gone…before 4 years. Harley is much more popular than Trump.

  14. 14 1550tc Jan 31st, 2017 at 5:58 pm

    FROM 52-week range(U.S.) $36.97 to (U.S.) $62.35 plus a 2.75 yield

    its 57us today…. so cash out buy a bike and go enjoy life if you think its all doom and gloom with
    the hi end white trash hillbillies at the white house 🙂

    WHAT are guys complaining about ?? Buy the stock and get paid to ride 🙂

    For every guy on one their are 2 guys trying to get bought at the bank or waiting for their inheritance to buy one or getting back into oil fields

  15. 15 18bravo Jan 31st, 2017 at 6:10 pm

    Strange… H-D has been suffering lagging sales for quite some time. Obama was president during those years. How does this mesh with your anti Trump rhetoric?

  16. 16 highrpm Jan 31st, 2017 at 6:52 pm

    @1550tc,
    the hi end white trash hillbillies at the white house
    wanna taint the discussion politicoeness…. interested in your phraseship describing o’s wh tenure.

  17. 17 Highrider Jan 31st, 2017 at 11:39 pm

    Amazing amount of hatred filled people on here! Back your country and back this president until the next one, we did it for the last one while holding our noses!

    Back to Harley. yeah tough market, the younger generation simply are not into the freedoms of the road like us greybeards were, nor are bars around, good rock and roll music, to ride to At least the women are STILL beautiful.

    Harley will adjust and adapt, I am sure.

  18. 18 James just another crazy kiwi Feb 1st, 2017 at 2:20 am

    Doug, what HD dealer has shut down recently in New Zealand ???

  19. 19 HD Rider Feb 1st, 2017 at 8:16 am

    I don’t look for a good 2017 for Harley. They never seem to get the first year model right and I expect similar issues for the Milwaukee 8 — I would expect buyers to stay away until 2018 when it’s more sorted out.

  20. 20 UpandOver Feb 1st, 2017 at 8:46 am

    If anything wouldn’t Trump bring back a bit of ‘Merica’ into the HD picture?

    HUGE jump in cafe racers and ADV riders (and smaller cc commuters) in the last few years…

    Personally I’m a huge fan of BOTH and all things with an engine.

    I think HD has to keep the building/designs and advertising aimed at BOTH the “graybeards” and the younger generation. Good innovation with keeping homage to the classics.

  21. 21 Hillbilly Jim Feb 1st, 2017 at 1:06 pm

    Cyril,
    Is this a motorcycle blog or a political blog. I thought It could possibly be a kindergarten web sight from all the cry babies. Please no more politics.

  22. 22 Charles Erickson Feb 1st, 2017 at 1:45 pm

    Trump is a hunk of crap that will bigly disappoint his followers. Any effect that he has on the motorcycle market, or any other market for that matter, will be negative. We will be lucky to still have a country that we can recognize in 4 years, if he lasts that long. I know a lot of bikers are nutso right wingers but here’s one who is most definitely not.

  23. 23 kent Feb 1st, 2017 at 1:49 pm

    Well if this isn’t the collapse of Harley, just wait until the trade wars are on! Gee! you could always ride an Indian and it’s a Great Bike!

  24. 24 FL Henry Feb 1st, 2017 at 1:52 pm

    Charles. Or in less words. He is a hack with a big mouth who is going to make America sick again.

  25. 25 Bikerchick Feb 1st, 2017 at 4:38 pm

    Maybe if they made their bikes more affordable to the average human, more would sell. They want to aim at a younger crowd. Good luck. They either still live at home or are in college with astronomical student loan debt. I wish the Motor Company lot’s of luck attracting the kind of market they are looking for.

  26. 26 GeezerRider Feb 1st, 2017 at 5:08 pm

    One point missed in the comments is that while motorcycle and associated product sales were down – which is killing the poor dealers, HDMC NET INCOME is up 42.2 million dollars over last year. Talk to any past HDMC employee, dealer principle or HDMC supplier and they will blow your mind with examples of the callous, inhumane way that HDMC treats their employees, dealers and suppliers. CEO Levitach says he has, “… great confidence in the strength of our long-term strategy.” BS! The HDMC execs are focused on growing the HDMC EPS year over year – period. They have fired 1000s of loyal, brilliant, hardcore enthusiasts that worked there and replaced them with non-riding, inexperienced people with no desire to make the brand great again and with a resume ready and waiting for a better job outside the company. 20-years ago 100% of HDMC employees would have told you they wanted to work at HDMC for life. Today, most employees are prepared to leave at a moments notice.

    To the “commenters” – Stop bitching about politics and go buy something from your dealer. They desperately need the business and HDMC is doing nothing but milking the dealers for every penny they can get.

    Hey Levatich, you want a long-term plan? Support your dealers, improve product quality and lower your wholesale prices so dealers can pass the savings along to customers. A long-term plan should be 20-years, not 12-months. It’s disgusting how HDMC execs have ruined the magic of the Motor Company. It’s just a factory now. Might as well be making appliances.

  27. 27 iPeg Feb 1st, 2017 at 5:36 pm

    Your opinions are wrong

  28. 28 Blackmax Feb 1st, 2017 at 7:05 pm

    going to be very interesting to see which of the ideologies pan out here
    & the results should be evident fairly quickly .
    If the economy rebound & there is discretionary income, H-D should be fine.
    They still need to market to a younger demographic & Polaris has shot itself in the foot,
    for the time being. Not to say they won;t rebound but it will take some time !!!
    if the economy does NOT recover & goes into a tailspin,
    there are very dark days ahead for EVERY cycle maker

  29. 29 big doug Feb 2nd, 2017 at 12:15 am

    james it was anza in palmerston north,I worked at wellington motorcycles before going to anzas,wellington mc had enough of the corporate bullshit that goes with being an hd dealer and told them to stick it so will be unemployed at the end of april, unless a new hd dealer is found,but got to agree with geezerrider above the shop I worked at had been a dealer for 34 years but the demands put on the business where to great and in the end HD just didn’t care about the people who worked there or the customers.

  30. 30 Jerrman Feb 2nd, 2017 at 11:49 am

    There will be no HUGE return of manufacturing jobs coming back to the U.S. That was and continues to be a scam that the working class fell for…again. If you’re in the technology sector, great. But, old fashioned manufacturing, a lot of which employs guys who buy HDs are in for a really rough ride. If a trade war ensues, we’re all in trouble. HD charges a premium for the motorcycles and that will continue to put pressure on them in rough economic times. The working class was only starting to come out of the doldrums during the last administration and they’re likely to be dumped right back in with the current one. HD will have to rely on something other than big bikes at big prices if they want to jump start their business again, particularly in the U.S. where unit sales are down almost 1/3 vs. the hey day around 2006 when they sold almost 360K motorcycles.

  31. 31 big doug Feb 2nd, 2017 at 1:01 pm

    I read the other day it took 50 years for the first 1 million automated robots to be made and will only take 8 for the next million to be made so as far as I can see there will be less jobs,and who just brought the company who made the 1st one,the chinese be afraid.

  32. 32 hark Feb 6th, 2017 at 10:43 am

    Why is it some will not give Trump a chance…it is crazy…Obama could have cared less about Harley-Davidson…he could care less about the auto manufactures…he just let um do what they wanted to do…move to Mexico…no big deal under Obama. If Harley has a problem it will not be because of Trump. One must start at the TOP of any company to place blame or problems.

  33. 33 mike corbin Feb 6th, 2017 at 12:01 pm

    love my M8 Street Glide

  34. 34 Joe Mar 10th, 2017 at 8:15 pm

    What a bunch of Little girls. My guess is not one of these posters here actually rides a motorcycle. Trump,is the best thing that has happened to America, you Clinton girls are just to brain dead to understand so no sense trying to explain. Save your pennies and go to Europe, go see how much a harley is in France or Italy about $50K because the socialist in Europe add huge import tax, called the vat tax. But guess what the USA does not tax Ducati, or BMW or a Honda. So what’s so wrong with wanting a even playing field. You little girls have been getting up the backside so long you forgot you have balls.

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