Harley Davidson Motorcycles Q1 profit grows by 44 percent
Harley Davidson has announced that their profits for Q1 2012 have increased by 44%. Their share price increased by 4.8% to $52.76 while they peaked at $53.03 earlier in the day when the announcement was made. Speaking of these spectacular results, Keith Wandall – Chairman, President and CEO of Harley Davidson said that improvements in the US economy coupled with the company’s strong restructuring program is what has resulted in this enormous success.
Strained economic conditions have an immediate effect on sales as Harley bikes, which range from $8000 for their base model and prices climb all the way up to $30,000 for customized bikes. Sales of both motorbikes and related products increased 13% during 2011 and the first quarter of this month means there have been four straight increases in US sales.
This was not the picture only across the US, global sales too increased by 20% to 59,677 bikes. Demand is seen for the Harley top enders while sales of Harley parts and accessories too increased by 21% to $199.1 million and sales of clothing rose by 19% to $74.6 million.
Harley-Davidson first quarter earnings, retail motorcycle sales up sharply
MILWAUKEE (April 25, 2012) –
Harley-Davidson, Inc. (NYSE: HOG) reported strong gains in earnings and dealer new motorcycle sales for the first quarter of 2012.
Income from continuing operations was $172.0 million, or $0.74 per share, on consolidated revenue of $1.43 billion for the quarter, compared to income from continuing operations of $119.3 million, or $0.51, on consolidated revenue of $1.22 billion in the year-ago quarter.
Retail sales of new Harley-Davidson motorcycles grew 20.3 percent worldwide in the quarter compared to the prior-year period, led by a 25.5 percent increase in the U.S.
“We continue to be encouraged by the strong trend at retail and in earnings over the past several quarters. Our first quarter performance reflects the outstanding appeal of our products, the ongoing results of our transformation strategy, the efforts of our dealers and employees, and improving macro-economic conditions in the U.S.,” said Keith Wandell, Chairman, President and Chief Executive Officer of Harley-Davidson, Inc.
“While we are obviously pleased by our strong start to the year, we are more focused than ever on the ongoing implementation of our business strategy and tapping the many opportunities we see globally. Through Harley-Davidson’s transformation to world-class manufacturing, product development and retail capabilities, we are positioning the Company to serve our customers even better and help ensure the strength of the business long term,” Wandell said.
Retail Harley-Davidson Motorcycle Sales
On a worldwide basis, dealers sold 59,677 new Harley-Davidson motorcycles in the first quarter of 2012, a 20.3 percent increase compared to 49,595 motorcycles sold in the year-ago period. Dealers sold 39,762 new Harley-Davidson motorcycles in the U.S., a 25.5 percent increase compared to the first quarter of 2011. In international markets, dealers sold 19,915 new Harley-Davidson motorcycles during the first quarter, an increase of 11.2 percent compared to the year-ago period.
Industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 17.5 percent compared to last year’s first quarter.
In 2011, for the fourth straight year, Harley-Davidson was the U.S. market share leader among young adults ages 18-34, women, African American and Hispanic riders, as well as among its core rider group, across all displacements of on-road motorcycles, according to recently available data. More than one-third of new Harley-Davidson motorcycle sales in the U.S. in 2011 were to riders new to the brand, and in the EMEA region, more than two-thirds were new to the brand.
“Harley-Davidson’s market leadership among its demographic outreach targets we believe demonstrates the powerful and growing appeal of the brand to new generations and diverse groups of riders,” Wandell said. “We also continued to expand the reach of Harley-Davidson to customers around the world. Our employees and dealers are more dedicated than ever to making customers’ dreams a reality through remarkable products and extraordinary experiences.”