Harley-Davidson has announced that through the first 9 months of 2012, retail sales of new motorcycles grew 6% overall, with 6.2% in the U.S. and 5.4% in international markets as compared to the first 9 months of 2011. In the 3rd quarter, retail sales of new motorcycles fell 1.3% worldwide compared to the 3rd quarter of 2011 with sales down 5.2% in the U.S. and up 7.6% internationally.
“We believe our U.S. dealers’ third-quarter new motorcycle sales were adversely affected by a limited availability of new motorcycles in July, August and early September resulting from the ERP implementation at York combined with the move of Harley-Davidson’s annual new model launch to late August from late July. As U.S. dealer inventory returned to more appropriate levels and the new 2013 motorcycles became more available, retail sales responded positively and gained momentum as we exited the quarter,” Wandell said.
“Harley-Davidson had a lot of exciting news for customers in the third quarter, with the launch of the 110th Anniversary year and Anniversary Edition motorcycles, and the rollout of our exciting full line of 2013 bikes. While we see great untapped opportunity at retail, we continue to temper our expectations in light of continued softness in the global economy,” said Wandell.
Worldwide, H-D dealers sold 61,053 new motorcycles in the 3rd quarter of 2012 compared to 61,838 motorcycles sold in 2011. U.S. dealers sold 40,402 new motorcycles in 2012 compared to 42,640 units in last year’s 3rd quarter. International dealers sold 20,651 new motorcycles in the period compared to 19,198 a year ago. During the quarter, retail unit sales increased 32.3% in Latin America, 9.8% in Asia and 1.8% in the Middle East and Africa, but decreased 4.7% in the U.S. and Canada compared to 2011’s 3rd quarter.
Through the first 9 months of 2012 dealers sold 206,444 new Harleys worldwide, with retail sales up 47.5% in Latin America, 14.1% in Asia and 6% in North America and down 2.9% in the Middle East compared to the year-ago period. Industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 3.8% through the first 9 months of 2012 compared to 2011.
Meanwhile Harley-Davidson, Inc. (NYSE: HOG) has reported earnings of $0.59 per share for the 3rd quarter of 2012. This is in line with the Company’s expectations. The earnings were lower than the same period in 2011 due to a previously announced plan for lower 3rd-quarter motorcycle shipments during the launch of an ERP production system at the Company’s largest assembly plant. Harley continues to forecast a 5-7% increase (compared to 2011) in motorcycle shipments for the full year of 2012.
3rd-quarter income from continuing operations was $134.0 million on consolidated revenue of $1.25 billion, compared to income from continuing operations of $183.6 million, or $0.78 per share, on consolidated revenue of $1.40 billion in the year-ago quarter. Through 9 months Harley’s income from continuing operations increased 12.1% year-over-year to $553.3 million, or $2.40 per share, on consolidated revenue of $4.41 billion, compared to income from continuing operations of $493.4 million, or $2.09 per share, on consolidated revenue of $4.13 billion in the year-ago period.
Posted by Sam Kanish