Harley-Davidson Reports Q2 2011 Results
First quarterly sales increase in US market since 2006
Harley-Davidson reported a net income of $190.6 million over the second quarter of 2011, thanks to the first year-on-year quarterly improvement in the U.S. market in nearly five years.
For the three months ended June 26, 2011, Harley-Davidson’s operating income totaled $301.9 million, a 38.0% increase from the $218.8 million reported in the same period of 2010. The increase can be attributed to an 18.0% increase in motorcycle sales revenue and a decrease in expenses from Harley-Davidson Financial Services.
Worldwide retail sales of Harley-Davidson motorcycles totaled 83,396 units, a 5.6% increase from the second quarter of 2010. U.S. sales totaled 53,599 units, a 7.5% increase from the 49,841 units sold in 2010. This represents Harley-Davidson’s first year-over-year quarterly increase in the U.S. since the fourth quarter of 2006.
Harley-Davidson also reduced estimates for restructuring costs to $490-505 million from the $510-525 million predicted in The Motor Company’s Q1 2011 report in April. Harley-Davidson expects to save from $210-230 million in 2011 from its restructuring efforts, and ongoing savings from $305-325 million a year once the restructuring is complete.
“While we are pleased by Harley-Davidson’s second-quarter results, including the strong jump at retail in the U.S., our focus remains squarely on sustaining this progress through the ongoing implementation of our business strategy,” says Keith Wandell, chief executive officer of Harley-Davidson. “Through the transformation to best-in-class manufacturing, product development and retail capabilities, we are positioning Harley-Davidson to be customer-led in all we do. Our employees, dealers and suppliers deserve tremendous credit for their dedication to making customers’ dreams a reality by delivering remarkable products and extraordinary customer experiences.”
Harley-Davidson raised its 2011 shipment forecast to 228,000-235,000 units from its previous forecast of 215,000-228,000 units.
Harley-Davidson Reports Q1 2011 Results