Harley-Davidson profit climbs on higher shipments, efficiencies
By Rick Barrett of the Journal Sentinel
Harley-Davidson Inc.’s first-quarter profit climbed nearly 34% on higher motorcycle shipments and continued improvement in operating efficiencies, the company said Thursday.
Harley said net income rose to $224.1 million, or 99 cents per share, from $172 million, or 74 cents a share, in the first quarter of 2012.
The company said it had $1.57 billion in revenue, up 9.8% from $1.43 billion in the year-ago quarter.
Analysts, on average, had expected Harley-Davidson to report a profit of 99 cents a share on sales on $1.46 billion, according to Thomson Reuters I/B/E/S.First-quarter operating income from motorcycles and related products grew 33% to $276.8 million, compared with $208.1 million in the year-ago period. Operating income benefited from higher motorcycle shipments, higher gross margin and lower restructuring costs.
Revenue from motorcycles grew 15.9% to $1.15 billion, compared with $995.9 million in the year-ago period. Harley shipped 75,222 motorcycles to dealers and distributors worldwide during the quarter, in line with guidance and a 17.1% increase from the year-ago period.
In the first quarter, the company launched seasonal surge production at its York, Pa. plant, which provides the flexibility to produce more motorcycles closer to customer demand during the prime selling season.
In the U.S., dealers sold 34,706 new motorcycles in the quarter, down 12.7% compared with the year-ago period which the company believes benefited from accelerated sales due to abnormally warm early spring weather.
In international markets, dealers sold 19,548 new motorcycles during the first quarter, compared with 19,915 motorcycles in the year-ago period.
Harley-Davidson continues to expect to ship 259,000 to 264,000 motorcycles to dealers and distributors worldwide in 2013, an approximate 4.5% to 6.5% increase from 2012.
In the second quarter of 2013, the company expects to ship 80,000 to 85,000 motorcycles, in line with shipments of 83,502 motorcycles in the year-ago period.
Harley continues to expect a full-year 2013 gross profit margin of 35.25% to 36.25%
More information will be coming here later this morning.