Harley-Davidson, Inc. reported that it had improved in several areas in the second quarter of 2011, with strong earnings growth, increased shipments and growth in its dealers’ new motorcycle sales both in the U.S. and globally.
Income from continuing operations in the second quarter 2011 rose 36.8 percent to $190.6 million compared to income of $139.3 million from continuing operations in the year-ago quarter. Second-quarter 2011 earnings results were led by operating income from Motorcycles and Related Products, which grew 39.2 percent to $219.8 million on higher shipment volume and operating margin improvement.
Operating income from the Financial Services grew 34.9 percent, compared to the second quarter of 2010. Retail sales of new Harley-Davidson motorcycles grew 7.5 percent in the U.S. and 5.6 percent worldwide in the second quarter.
The company raised its shipment forecast for 2011 and now expects to ship between 228,000 and 235,000 new Harley-Davidson motorcycles to dealers and distributors worldwide, an increase of 8 percent to 12 percent compared to 2010 shipments.
For the first six months of 2011, Harley-Davidson income from continuing operations was up 48.9 percent compared to the year-ago period to $309.8 million.
“Harley-Davidson continues to make great progress as we transform our business and take our iconic brand to the many roads of the world,” said Keith Wandell, president and CEO of Harley-Davidson, Inc. “While we are pleased by our second-quarter results, including the strong jump at retail in the U.S., our focus remains squarely on sustaining this progress through the ongoing implementation of our business strategy."
"We also believe the continued improvement in our results in the face of ongoing consumer and economic uncertainty speaks to the power of the Harley-Davidson brand globally,” Wandell added.
Dealers sold 53,599 new Harley-Davidson motorcycles in the U.S., a 7.5 percent increase compared to last year’s second quarter and the first year-over-year quarterly rise in U.S. Harley-Davidson new motorcycles sales since the fourth quarter of 2006. Industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 4.2 percent in the second quarter of 2011 compared to the year-ago period.
U.S. retail sales of new Harley-Davidson motorcycles increased 4.4 percent to 85,290 units for the first half of the year compared to the year-ago period. Through six months, industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 3.8 percent, compared to the year-ago period.
Revenue from Motorcycle Parts and Accessories (P&A) totaled $255.4 million during the quarter, up 10.2 percent, and revenue from merchandise, which includes apparel and accessories, was $72.9 million, up 8.2 percent compared to the year-ago period.
For more information about Harley-Davidson, visit www.harley-davidson.com.
