Total Motorcycle Forums • View topic - Harley-Davidson Earnings, Retail Motorcycle Sales Show Plus
Total Motorcycle Forums

Main Site

Forums


Photo Gallery

HTML Cd Menu Css3Menu.com

Back to Main Site Main Site . * Login   * Register .    * Search .  . Donate Today Donate .  . Subscribe / Unsubscribe Subscribe / Unsubscribe

All times are UTC - 7 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
Unread postPosted: Wed Jan 25, 2012 11:18 am 
Administrator
Administrator
User avatar

Joined: Sat Nov 22, 2003 6:00 pm
Posts: 31870
Location: Houston, Texas
Real Name: Mike
Sex: Male
Years Riding: 21
My Motorcycle: 2013 Moto Guzzi V7 Stone
#Harley-#Davidson Earnings, Retail Motorcycle #Sales Show Continued Strength


Worldwide Retail New Motorcycle Sales Climb 10.9 Percent in Fourth Quarter and 5.9 Percent for the Full Year
Full-Year Earnings Double on Motorcycle Shipment Growth, Improved Motorcycle Operating Margin and Financial Services Performance
PR Newswire


MILWAUKEE, Jan. 24, 2012

MILWAUKEE, Jan. 24, 2012 /PRNewswire/ -- Harley-Davidson, Inc. (NYSE: HOG) reported a strong finish to 2011, with improved fourth-quarter performance capping a year of earnings and dealer retail sales growth.

Income from continuing operations was $54.6 million, or $0.24 per share, in the fourth quarter of 2011, compared to a loss of $42.1 million, or $0.18 per share from continuing operations in the year-ago quarter. For the full year 2011, income from continuing operations more than doubled to $548.1 million, or $2.33 per share, compared to income of $259.7 million, or $1.11 per share, from continuing operations in 2010.

Retail sales of new Harley-Davidson motorcycles grew 10.9 percent worldwide in the fourth quarter compared to the prior-year period, including an 11.8 percent increase in the U.S. For the full year 2011, new Harley-Davidson motorcycle retail sales rose 5.9 percent worldwide and 5.8 percent in the U.S.

On a segment basis, full-year operating income from Motorcycles and Related Products grew 48.2 percent on higher shipment volume and operating margin improvement, while operating income from Financial Services grew 47.8 percent on continued improvement in credit performance, compared to 2010.

"Our improved performance in 2011 is the result of the tremendous efforts of all of our employees, dealers and suppliers," said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc.

"Harley-Davidson is all about fulfilling dreams through remarkable motorcycles and extraordinary customer experiences. In 2011 we made strong progress at transforming our business to be more agile and effective than ever at exceeding customer expectations," Wandell said. "The changes underway across the organization will enable Harley-Davidson to be world class and customer led like never before, with shorter product development lead times, flexible manufacturing and an unmatched premium retail experience.

"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," Wandell said.

Retail Harley-Davidson Motorcycle Sales

On a worldwide basis, dealers sold 40,359 new Harley-Davidson motorcycles in the fourth quarter of 2011, a 10.9 percent increase compared to 36,390 motorcycles sold in the year-ago period. Dealers sold 23,753 new Harley-Davidson motorcycles in the U.S., an 11.8 percent increase compared to the fourth quarter of 2010. In international markets, dealers sold 16,606 new Harley-Davidson motorcycles during the fourth quarter, an increase of 9.7 percent compared to the year-ago period.

For the full year, worldwide retail sales of new Harley-Davidson motorcycles increased 5.9 percent to 235,188 units, compared to sales of 222,110 units in 2010. U.S. retail sales of new Harley-Davidson motorcycles increased 5.8 percent to 151,683 units, and in international markets sales increased 6.1 percent to 83,505 units, for the full year compared to 2010. Industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 4.3 percent for the full year, compared to 2010.

Fourth-quarter and full-year data are listed in the accompanying tables.

Harley-Davidson Motorcycles and Related Products Segment Financial Results

Fourth-Quarter Segment Results: Revenue from Motorcycles during the fourth quarter of 2011 of $791.9 million was up 13.5 percent compared to the year-ago period. The Company shipped 50,730 motorcycles to dealers and distributors worldwide during the quarter, compared to shipments of 44,481 motorcycles in the fourth quarter of 2010.

Revenue from Motorcycle Parts and Accessories (P&A) totaled $161.2 million during the quarter, up 7.9 percent, and revenue from General Merchandise, which includes MotorClothes® Apparel and Accessories, was $69.3 million, up 12.8 percent compared to the year-ago period.

Gross margin was 31.2 percent in the fourth quarter of 2011, compared to 29.6 percent in the fourth quarter of 2010. Fourth-quarter operating margin from motorcycles and related products was 3.5 percent on operating income of $35.6 million. In 2010, the Company had an operating loss in the fourth quarter from motorcycles and related products of $6.8 million.

Twelve-Month Segment Results: For the full year of 2011, the Company shipped 233,117 motorcycles to dealers and distributors, a 10.7 percent increase compared to 210,494 units shipped in 2010.

Revenue from Motorcycles for the full year was $3.55 billion, a 13.3 percent increase compared to the year-ago period. Full-year P&A revenue was $816.6 million, a 9.0 percent increase compared to 2010. General Merchandise revenue was $274.1 million, a 5.8 percent increase compared to 2010.

Gross margin for the full year was 33.4 percent and operating margin was 12.0 percent, compared to 34.2 percent and 9.1 percent respectively in 2010.

Financial Services Segment

The Financial Services segment recorded operating income of $56.8 million in the fourth quarter of 2011, compared to operating income of $43.5 million in the year-ago quarter. The increase in fourth-quarter operating income was largely the result of continued improvement in credit performance at Harley-Davidson Financial Services. For the full year, operating income from financial services was $268.8 million, compared to operating income of $181.9 million in 2010.

Guidance

Harley-Davidson expects to ship 240,000 to 245,000 motorcycles to dealers and distributors worldwide in 2012, a three-to five-percent increase compared to 2011. In the first quarter of 2012, the Company expects to ship 58,000 to 63,000 motorcycles.

For the full year, Harley-Davidson expects gross margin to be between 34.75 percent and 35.75 percent. The Company expects capital expenditures of between $190 million and $210 million in 2012, which includes approximately $25 million to support restructuring activities.

Restructuring Update

In 2011, Harley-Davidson realized cumulative savings from restructuring activities initiated since early 2009 of $217 million, in line with company estimates of $210 million to $230 million. Upon completion, Harley-Davidson continues to expect restructuring activities to generate annual ongoing savings of $315 million to $335 million, beginning in 2014. For the full year 2011, Harley-Davidson incurred one-time restructuring costs of $68.0 million. The Company now expects all restructuring activities initiated since 2009 to result in one-time overall costs of $500 million to $520 million through 2013, including $50 million to $60 million in 2012, a $5 million reduction to the range previously provided.

Income Tax Rate

For the full year 2011, the Company's effective income tax rate from continuing operations was 30.9 percent, compared to 33.5 percent in 2010. The lower 2011 effective tax rate was mainly driven by a 2011 change in the Wisconsin income tax law associated with certain net operating losses, and a one-time tax charge in 2010 associated with the federal healthcare legislation. In 2012, the Company expects its full-year effective tax rate from continuing operations to be approximately 35.5 percent.

Cash Flow

Cash and marketable securities totaled $1.68 billion at year-end 2011, compared to $1.16 billion at year-end 2010. For full-year 2011, Harley-Davidson generated $885.3 million of cash provided by operating activities from continuing operations, compared to $1.16 billion in 2010. Capital expenditures for full-year 2011 were $189.0 million.

Share Repurchase

The Company repurchased 3.5 million shares of Harley-Davidson, Inc. common stock at a cost of $127.0 million during the fourth quarter of 2011. At year-end 2011, there were approximately 230.5 million shares of Harley-Davidson common stock outstanding and 18.6 million shares remaining on board-approved share repurchase authorizations.

Discontinued Operations

In the fourth quarter of 2011, Harley-Davidson recognized a $51.0 million benefit on income from discontinued operations, driven by the reversal of tax amounts reserved in prior years related to the divestiture of the Company's MV Agusta subsidiaries. The amounts had been reserved pending an agreement with the IRS on the tax treatment of the transaction. With the agreement, the Company anticipates no further financial adjustments related to MV Agusta.

Company Background

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company produces heavyweight custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. Harley-Davidson Financial Services provides wholesale and retail financing, insurance, extended service and other protection plans and credit card programs to Harley-Davidson dealers and riders in the U.S., Canada and select European countries. For more information, visit Harley-Davidson's Web site at www.harley-davidson.com.

Conference Call and Webcast Presentation

Harley-Davidson will discuss fourth-quarter results on a Webcast at 8:00 a.m. CT today. The Webcast presentation will be posted prior to the call and can be accessed at http://investor.harley-davidson.com/. Click "Events and Presentations" under "Resources." The audio portion of today's call will also be posted at harley-davidson.com beginning approximately two hours after the conclusion of the call for one year. The audio may also be accessed until February 7, 2012 by calling 404-537-3406 or 855-859-2056 in the US, pin number36261875#.


Forward-Looking Statements

The Company intends that certain matters discussed in this release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "believes," "anticipates," "expects," "plans," or "estimates" or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The Company's ability to meet the targets and expectations noted depends upon, among other factors, the Company's ability to (i) execute its business strategy, (ii) effectively execute the Company's restructuring plans within expected costs and timing, (iii) implement and manage enterprise-wide information technology solutions, including solutions at its manufacturing facilities, and secure data contained in those systems, (iv) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, (v) anticipate the level of consumer confidence in the economy, (vi) manage through inconsistent economic conditions, including changing capital, credit and retail markets, (vii) continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead, (viii) successfully implement with our labor unions the agreements that we have executed with them that we believe will provide flexibility and cost-effectiveness to accomplish restructuring goals and long-term competitiveness, (ix) manage risks that arise through expanding international operations and sales, (x) manage supply chain issues, including any unexpected interruptions or price increases caused by raw material shortages or natural disasters, (xi) manage production capacity and production changes, (xii) provide products, services and experiences that are successful in the marketplace, (xiii) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, (xiv) manage the risks that our independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand, (xv) continue to have access to reliable sources of capital funding and adjust to fluctuations in the cost of capital, (xvi) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS' loan portfolio, (xvii) sell all of its motorcycles and related products and services to its independent dealers, (xviii) continue to develop the capabilities of its distributor and dealer network, (xix) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (xx) adjust to healthcare inflation and reform, pension reform and tax changes, (xxi) retain and attract talented employees, and (xxii) detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation.

In addition, the Company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission.

The Company's ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company's independent dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company's independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

TABLES FOLLOW

Harley-Davidson, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)





(Unaudited)

(Unaudited)

(Unaudited)





Three months ended

Twelve months ended



December 31,

December 31,

December 31,

December 31,



2011

2010

2011

2010











Motorcycles and related products revenue

$ 1,026,777

$ 917,076

$ 4,662,264

$ 4,176,627

Gross profit

320,451

271,066

1,555,976

1,427,403

Selling, administrative and engineering expense

265,918

260,153

926,808

885,137

Restructuring expense

18,970

17,671

67,992

163,508

Operating income from motorcycles & related products

35,563

(6,758)

561,176

378,758











Financial services revenue

157,153

166,322

649,449

682,709

Financial services expense

100,336

122,844

380,658

500,836

Operating income from financial services

56,817

43,478

268,791

181,873











Operating income

92,380

36,720

829,967

560,631

Investment income

2,338

1,776

7,963

5,442

Interest expense

11,165

20,209

45,266

90,357

Loss on debt extinguishment



85,247



85,247

Income (loss) before income taxes

83,553

(66,960)

792,664

390,469

Provision (benefit) for income taxes

28,909

(24,884)

244,586

130,800

Income (loss) from continuing operations

54,644

(42,076)

548,078

259,669

Income (loss) from discontinued operations, net of tax

51,036

(4,690)

51,036

(113,124)

Net income (loss)

$ 105,680

$ (46,766)

$ 599,114

$ 146,545











Earnings (loss) per common share from continuing operations:









Basic

$ 0.24

$ (0.18)

$ 2.35

$ 1.11

Diluted

$ 0.24

$ (0.18)

$ 2.33

$ 1.11











Income (loss) per common share from discontinued operations:









Basic

$ 0.22

$ (0.02)

$ 0.22

$ (0.48)

Diluted

$ 0.22

$ (0.02)

$ 0.22

$ (0.48)











Earnings (loss) per common share:









Basic

$ 0.46

$ (0.20)

$ 2.57

$ 0.63

Diluted

$ 0.46

$ (0.20)

$ 2.55

$ 0.62











Weighted-average common shares:









Basic

229,827

233,535

232,889

233,312

Diluted

231,968

233,535

234,918

234,787











Cash dividends per common share

$ 0.125

$ 0.10

$ 0.475

$ 0.40











Harley-Davidson, Inc.

Condensed Consolidated Balance Sheets

(In thousands)











(Unaudited)







December 31,

December 31,





2011

2010











ASSETS







Current assets:







Cash and cash equivalents

$ 1,526,950

$ 1,021,933



Marketable securities

153,380

140,118



Accounts receivable, net

219,039

262,382



Finance receivables, net

1,168,603

1,080,432



Restricted finance receivables held by variable interest entities, net

591,864

699,026



Inventories

418,006

326,446



Restricted cash held by variable interest entities

229,655

288,887



Other current assets

234,709

247,402



Total current assets

4,542,206

4,066,626











Finance receivables, net

1,754,441

1,553,781



Restricted finance receivables held by variable interest entities, net

2,271,773

2,684,330



Other long-term assets

1,105,744

1,126,003





$ 9,674,164

$ 9,430,740











LIABILITIES AND SHAREHOLDERS' EQUITY







Current liabilities:







Accounts payable & accrued liabilities

$ 819,885

$ 782,017



Short-term debt

838,486

480,472



Current portion of long-term debt

399,916

-



Current portion of long-term debt held by variable interest entities

640,331

751,293



Total current liabilities

2,698,618

2,013,782











Long-term debt

2,396,871

2,516,650



Long-term debt held by variable interest entities

1,447,015

2,003,941



Pension and postretirement healthcare liabilities

571,065

536,847



Other long-term liabilities

140,339

152,654











Total shareholders' equity

2,420,256

2,206,866





$ 9,674,164

$ 9,430,740













Harley-Davidson, Inc.



Condensed Consolidated Statements of Cash Flows



(In thousands)









(Unaudited)







Twelve months ended



December 31,

December 31,

December 31,



2011

2010

2009









Net cash provided by operating activities







of continuing operations

$ 885,291

$ 1,163,418

$ 609,010









Cash flows from investing activities of continuing operations:







Capital expenditures

(189,035)

(170,845)

(116,748)

Finance receivables, net

138,025

416,430

(771,058)

Collection of retained securitization interests





61,170

Net change in marketable securities

(12,532)

(100,148)

(39,685)

Other, net

-

-

2,834

Net cash (used by) provided by investing activities of continuing operations

(63,542)

145,437

(863,487)









Cash flows from financing activities of continuing operations:







Proceeds from issuance of medium-term notes

387,865

-

496,514

Repayments of medium-term notes

-

(200,000)

-

Proceeds from issuance of senior unsecured notes

-

-

595,026

Repayments of senior unsecured notes

-

(380,757)

-

Proceeds from securitization debt

1,082,599

598,187

2,413,192

Repayments of securitization debt

(1,754,568)

(1,896,665)

(263,083)

Net increase (decrease) in credit facilities and unsecured commercial paper

237,827

30,575

(1,083,331)

Net repayments of asset-backed commercial paper

(483)

(845)

(513,168)

Net change in restricted cash

59,232

77,654

(167,667)

Dividends

(111,011)

(94,145)

(93,807)

Purchase of common stock for treasury

(224,548)

(1,706)

(1,920)

Excess tax benefits from share-based payments

6,303

3,767

170

Issuance of common stock under employee stock option plans

7,840

7,845

11

Net cash used by financing activities of continuing operations

(308,944)

(1,856,090)

1,381,937









Effect of exchange rate changes on cash and cash equivalents







of continuing operations

(7,788)

4,940

6,789









Net increase (decrease) in cash and cash equivalents of continuing operations

505,017

(542,295)

1,134,249









Cash flows from discontinued operations:







Cash flows from operating activities of discontinued operations

-

(71,073)

(71,298)

Cash flows from investing activities of discontinued operations

-

-

(18,805)

Effect of exchange rate changes on cash and cash equivalents







of discontinued operations

-

(1,195)

(1,208)



-

(72,268)

(91,311)









Net increase (decrease) in cash and cash equivalents

$ 505,017

$ (614,563)

$ 1,042,938









Cash and cash equivalents:







Cash and cash equivalents - beginning of period

$ 1,021,933

$ 1,630,433

$ 568,894

Cash and cash equivalents of discontinued operations - beginning of period

-

6,063

24,664

Net increase (decrease) in cash and cash equivalents

505,017

(614,563)

1,042,938

Less: Cash and cash equivalents of discontinued operations - end of period





(6,063)

Cash and cash equivalents - end of period

$ 1,526,950

$ 1,021,933

$ 1,630,433














Motorcycles and Related Products Revenue and

Motorcycle Shipment Data





(Unaudited)

(Unaudited)

(Unaudited)





Three months ended

Twelve months ended



December 31,

December 31,

December 31,

December 31,



2011

2010

2011

2010

MOTORCYCLES AND RELATED PRODUCTS REVENUE (in thousands)









Harley-Davidson( R ) motorcycles

$ 791,917

$ 697,781

$ 3,553,291

$ 3,136,987

Buell( R ) motorcycles

67

4,546

1,256

16,280

Parts & Accessories

161,182

149,395

816,569

749,240

General Merchandise

69,315

61,458

274,124

259,125

Other

4,296

3,896

17,024

14,995



$ 1,026,777

$ 917,076

$ 4,662,264

$ 4,176,627











MOTORCYCLE SHIPMENTS:









Harley-Davidson









United States

33,625

27,617

152,180

131,636

International

17,105

16,864

80,937

78,858

Total Harley-Davidson

50,730

44,481

233,117

210,494











Buell

10

63

274

2,614











MOTORCYCLE PRODUCT MIX:









Harley-Davidson









Touring

21,592

18,514

92,002

81,927

Custom

19,933

17,835

91,459

87,158

Sportster( R )

9,205

8,132

49,656

41,409

Total Harley-Davidson

50,730

44,481

233,117

210,494
















Worldwide Retail Sales of Harley-Davidson Motorcycles













Three months ended

Twelve months ended



December 31,

December 31,

December 31,

December 31,



2011

2010

2011

2010

North America Region









United States

23,753

21,246

151,683

143,391

Canada

1,214

1,022

10,502

10,376

Total North America Region

24,967

22,268

162,185

153,767











Europe Region (Includes Middle East and Africa)









Europe*

5,997

5,938

39,334

37,378

Other

1,059

731

5,006

3,810

Total Europe Region

7,056

6,669

44,340

41,188











Asia Pacific Region









Japan

2,574

2,951

10,401

11,405

Other

3,270

2,750

11,015

9,582

Total Asia Pacific Region

5,844

5,701

21,416

20,987











Latin America Region

2,492

1,752

7,247

6,168











Total Worldwide Retail Sales

40,359

36,390

235,188

222,110














Data Source (subject to update)









Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and this information is subject to revision.















Only Harley-Davidson( R ) motorcycles are included in the Harley-Davidson Motorcycle Sales data.

















* Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.














Heavyweight Motorcycle Registration Data(1)









Twelve months ended



December 31,

December 31,



2011

2010

United States(2)

271,018

259,733









Eleven months ended



November 30,

November 30,



2011

2010

Europe(3)

284,853

294,351










1 - Heavyweight data includes street legal 651+cc models. Street legal 651+cc models include on-highway, dual purpose models and three-wheeled vehicles.







2 - United States data is derived from information provided by Motorcycle Industry Council (MIC). This third party data is subject to revision and update. Prior periods have been adjusted to include all dual purpose models that were previously excluded.







3 - Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle registration data includes 651+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency. Europe market data is reported on a one-month lag. This third-party data is subject to revision and update.

_________________
2015 Motorcycle Model Guides
2014 Motorcycle Model Guides

Total Motorcycle is official Media/Press for Aprilia, Benelli, Beta, Bimota, BMW, Buell, Can-Am, Ducati, Harley-Davidson, Honda, Husqvarna, Husaberg, Hyosung, Indian, Kawasaki, KTM, KYMCO, Moto Guzzi, Moto Morini, MV Agusta, Norton, Phantom, Piaggio, Polaris, Ridley, Roehr, Royal Enfield, Suzuki, Triumph, Ural, Vespa, Victory, Yamaha and Zero.


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 7 hours [ DST ]


Who is online

Users browsing this forum: Google Feedfetcher, GS_in_CO and 130 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  

 
 

Powered by phpBB © 2013 phpBB Group