Harley-Davidson Delivers Strong Full-Year 2014 Financials

Harley-Davidson, Inc. full-year 2014 net income was $844.6 million on consolidated revenue of $6.23 billion compared to full-year 2013 net income of $734.0 million on consolidated revenue of $5.90 billion. For the fourth quarter of 2014, net income was $74.5 million on consolidated revenue of $1.20 billion compared to net income of $75.4 million on consolidated revenue of $1.19 billion in the year-ago period.

Worldwide retail sales of new Harley-Davidson motorcycles grew 2.8 percent in the fourth quarter and 2.7 percent for the full year compared to the year-ago periods, driven by strong international sales – up 9.2 percent in the fourth quarter and 5.4 percent for the full year.

“Harley-Davidson achieved a great year of financial performance in 2014, with double-digit earnings growth, revenue topping $6 billion and continued strong improvement in margins,” said Keith Wandell, chairman, president and CEO of Harley-Davidson, Inc.

“We also continued to broaden our customer base and expand the reach of our brand through unrivaled products and experiences. In international markets, our dealers in Asia Pacific, EMEA and Latin America posted their highest new motorcycle sales on record for each region, delivering on our expectation for international sales to grow at a faster rate than U.S. sales. And in the U.S., for the third straight year, sales to our outreach customers grew at more than twice the rate of sales to core customers.”

“Our success is the result of a clear focus on managing the company for the long term, building on our well-established strategies and driving continuous improvement in every aspect of our business,” Wandell said.

Retail Harley-Davidson Motorcycle Sales

Dealers worldwide sold 47,149 new Harley-Davidson motorcycles in the fourth quarter of 2014, up 2.8 percent compared to 45,875 motorcycles in the year-ago quarter. In the U.S., dealers sold 26,957 new Harley-Davidson motorcycles in the quarter, down 1.6 percent compared to sales of 27,387 motorcycles in the year-ago period. In international markets, dealers sold 20,192 new Harley-Davidson motorcycles during the quarter, up 9.2 percent compared to sales of 18,488 motorcycles in the year-ago period, with unit sales up 14.2 percent in the Asia Pacific region, 8.7 percent in the EMEA region and 4.7 percent in the Latin America region, and down 5.7 percent in Canada.

For the full year 2014, dealers sold 267,999 new Harley-Davidson motorcycles worldwide, up 2.7 percent compared to 260,839 motorcycles in 2013. Retail unit sales were up 1.3 percent in the U.S., 11.8 percent in the Asia Pacific region, 6.4 percent in the EMEA region, 2.1 percent in the Latin America region and down 10.8 percent in Canada compared to full-year 2013.

Harley-Davidson Motorcycles and Related Products Segment Results

Fourth-Quarter Results: Operating income for the Motorcycles and Related Products segment (the Motorcycles segment) was $35.9 million in the fourth quarter of 2014 compared to operating income of $60.7 million in the year-ago period. Operating income in the quarter was primarily impacted by unfavorable foreign currency exchange rates.

Revenue from sales of motorcycles to dealers and distributors increased to $784.5 million, compared to revenue of $781.8 million in the year-ago period. The Company shipped 47,157 motorcycles worldwide during the quarter compared to shipments of 46,618 motorcycles in the year-ago period.

Revenue from motorcycle parts and accessories was $165.6 million during the quarter compared to $169.3 million the year-ago period. Revenue from general merchandise, which includes MotorClothes apparel and accessories, was $75.0 million compared to $75.9 million in the year-ago period.

Gross margin for the Motorcycles segment was 30.5 percent in the fourth quarter of 2014 compared to 31.5 percent in the fourth quarter of 2013. Fourth-quarter operating margin for the Motorcycles segment was 3.5 percent compared to operating margin of 5.9 percent in last year’s fourth quarter.

Twelve-Month Results: For the full year 2014, the Company shipped 270,726 motorcycles to dealers and distributors, a 3.9 percent increase compared to 2013 and in line with guidance. Full-year revenue from motorcycles was $4.39 billion compared to $4.07 billion in the year-ago period. Revenue from parts and accessories was $875.0 million compared to $873.1 million in 2013. Revenue from general merchandise was $284.8 million compared to $295.9 million in the prior year. Full-year gross margin for the Motorcycles segment was 36.4 percent, and operating margin was 18.0 percent compared to 35.4 percent and 16.6 percent respectively in 2013.

The Sturgis Motorcycle Museum and Hall of Fame recently named Marilyn Stemp and Steve Piehl to its board of directors.

Stemp is a pioneering figure in the motorcycle industry, founding IronWorks Magazine with her late husband, Dennis, and becoming the first female editor of a nationally circulated, mainstream motorcycle magazine. She also revived their trade magazine, Iron Trader News; edits the monthly Kiwi Indian News; contributes to several powersports media outlets; and is the founding editor of Sturgis Rider Daily. Stemp is a noted editor and writer of several motorcycle-focused books. Her consistent support for charitable efforts in the industry include the annual Biker Belles Celebration, Las Vegas BikeFest and as campaign chair for the Sturgis Motorcycle Museum’s development plan in 2014. She co-founded the Flying Piston charity events taking place in Daytona and Sturgis each year and is a National Ambassador for All Kids Bike. Stemp was inducted into both the Las Vegas Motorcycle Hall of Fame and the Sturgis Museum's Hall of Fame in 2018, and in 2022 she was recognized as one of the Top 100 Women in Powersports by DealerNews.