Harley’s 3rd quarter profits


Harley reports 5.4 percent motorcycle sales growth for 3rd quarter in USA

harley logoHARLEY-Davidson has reported continued strong improvement in earnings and dealer retail sales in the third quarter of 2011 and through the nine months of the year-to-date, compared to 2010.The company says that third-quarter operating income from Motorcycles and Related Products grew 78.0 percent on higher shipment volumes and operating margin improvements, with operating income from its Financial Services segment grew 21.9 percent due to continued improvement in credit performance, compared to the third quarter of 2010.

Retail sales of new Harley-Davidson motorcycles are said to have grown by 5.1 percent worldwide in the third quarter (to 61,838), led by a 5.4 percent rise in the US, with first nine-month retail sales up 4.9 percent (worldwide) to 194,829.

“We are pleased with our sustained progress and we continue to realize strong momentum in the transformation our business,” said Keith Wandell, President and Chief Executive Officer of Harley-Davidson.

“Two years ago we embarked on our strategy to focus solely on the Harley-Davidson brand, provide the flexibility required in today’s market and make Harley-Davidson lean, agile and more effective than ever at delivering remarkable products and extraordinary customer experiences. Today, we continue to see the positive results of the course we have charted,” Wandell said. “The changes underway in manufacturing, product development and retail capability…

“Involves a tremendous amount of highly complex, challenging work across every part of the organization. While much remains to be done, we are well down the road and everyone involved deserves much credit for bringing these changes to life.”

Dealers sold 42,640 new Harley-Davidson motorcycles in the third quarter in the US, a 5.4 percent increase. In international markets, dealers sold 19,198 new Harley-Davidson motorcycles during the third quarter, an increase of 4.4 percent compared to the year-ago period.

Through nine months US retail sales of new Harley-Davidson motorcycles increased 4.7 percent to 127,930 units, with international, retail sales of new Harley-Davidson motorcycles increasing by 5.2 percent to 66,899 units. During the same period industry-wide US heavyweight new motorcycle (651cc-plus) retail unit sales are said to have increased 3.7 percent, again pointing to an above market performance.

Revenue from Motorcycle Parts and Accessories (P&A) totaled $235.7 million during the quarter, up 7.6 percent, and revenue from General Merchandise, which includes MotorClothes Apparel and Accessories, was $69.3 million, up 8.2 percent compared to the year-ago period.


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