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Harley-Davidson Sales Up 5.9% in 2011

Tuesday, January 24, 2012
The Harley-Davidson fourth quarter earnings report shows a rebound for The Motor Company in 2011. H-D doubled its income this year compared to 2010. The company also claims 5.9% increase retail sales for 2011.
Harley Davidson Motorcycles
The fourth quarter earnings report reveals Harley-Davidson income has doubled from the previous year, with its retail motorcycle sales up 5.9% in 2011.

A strong fourth quarter bolstered Harley’s claims. Worldwide sales for Q4 were up 10.9% at 40,359 units, with the domestic U.S. market up 11.8% at 23,753 units. Harley-Davidson sold a total of 235,188 units worldwide, up 5.9% compared with the 222,110 units sold in 2010. The total haul in the U.S. market was 151,683 units (5.8%). International sales topped 83,505 units, up 6.1% for the year.

H-D’s Q4 operating income of $54.6 million ($0.24 per share) reverses the $42.1 million loss it generated in the same quarter last year. Harley-Davidson reports a full 2011 operating income of $584.1 million ($2.33 per share), more than double the $259.7 million ($1.11 per share) posted in 2010.

The 2011 revenue increase comes via more bike production, gains from H-D’s parts and merchandise segments, as well improved performance of Harley-Davidson Financial Services (HDFS). For the year H-D shipped 233,117 bikes to dealers, up 10.7% from 2010’s 210,494 units. Revenue generated from motorcycles totaled $3.55 billion, up 13.3% for 2011. The parts and accessories segment enjoyed a 9% increase at $816.6 million, with merchandise revenue up 5.8% at $274.1 million.

HDFS cites improved credit performance to boost its 2011 operating income for Q4 to $56.8 million. For the year HDFS brought in $268.8 million in income, compared to $181.9 million in 2010.

The company also claims savings reaped from its restructuring moves. The controversial cost-cutting measures included renegotiating its labor union contracts, as well discontinuing Buell Motorcycles and selling MV Agusta. Harley reckons restructuring efforts incurred a one-time cost of $68 million in 2011, but generated $217 million in savings. Harley also reports a $51 million tax benefit related to its sale of MV Agusta.

In its company earnings statement announcement, H-D President and CEO Keith Wandell said: “At retail, we believe the solid improvement in new Harley-Davidson motorcycle sales reflects the strong appeal of our product lineup to a diverse customer base and the great efforts of our dealers, combined with results from our investments in growth opportunities across all regions and improved consumer confidence in the U.S. While we are encouraged by the retail sales trend, we continue to keep a close watch on the marketplace and remain cautious in our expectations for 2012.”

The Motor Company plans a modest 3 to 5% increase in production for 2012. It expects to ship up to 245,000 motorcycles to dealers and distributors, with up to 63,000 slated for the first quarter of 2012.

Harley-Davidson Dealer Locator

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Comments
Hecklerboy   January 31, 2012 01:58 PM
GB: That's exactly what I was getting at. Piglet was hating on doctors and lawyers because in his mind they make allot of money and are the only ones that can afford a HD.

I wish I made what a doctor or lawyer does. I've had to scrimp and save to afford my bike.

Besides, there are allot of bikes out there than cost twice as much as a HD.
GB   January 30, 2012 02:27 PM
Hecklerboy, i can pretty much afford any toy i want. i don't wanna HD simply cuz of people like you. i don't need a machine to make me feel like i've made it (i have). why can't people like you just enjoy your ride without putting someone else's ride dow. FYI: i ride the other american made motorcycle.
Bully   January 27, 2012 09:51 AM
I dont think anybody really hates a Harley excent maybe some of the owners, you know love hate relationship. Not being able to afford one is a reality for a lot of bikers but that is a blessing in disguise. Saying dont hate it because you cant afford it really says nothing for how good a product is. I love riding with guys on Harleys because that way I really appreciate my bike. I am missing the point here?
Hecklerboy   January 26, 2012 01:47 PM
Yep, doing pretty good financially.
Just bought a 2011 Street Glide.

Don't hate because you can't afford a Harley.
Piglet2010   January 24, 2012 03:16 PM
Guess the doctors, dentists, accountants, and lawyers who like to play 1% MC members on the weekends must be doing OK financially.