Harley-Davidson Reports Q4 2011 Results
Harley-Davidson reported a 10.9% growth in motorcycle sales in the fourth quarter and a total annual growth of 5.9% for 2011. The growth resulted in a net profit of $599.1 million for Harley-Davidson.
The Motor Company sold 235,188 motorcycles in 2011, up from 222,110 units sold in 2010. Fourth quarter sales totaled 40,359 units, an increase from the 36,390 units sold in the same quarter of 2010.
“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,” says Keith Wandell, president and chief executive officer of Harley-Davidson, Inc. “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.
Operating income from motorcycle and related product sales for 2011 to $561.2 million, a 48% increase from the operating income of $378.8 million reported for 2010. The fourth quarter especially saw a big turnaround with Harley-Davidson reporting an operating income of $35.6 million compared to a loss of $6.8 million in the same quarter of 2010.
Revenue from Harley-Davidson Financial Services decreased 4.9% in 2011 but a large reduction in HDFS’ expenses resulted in a 47% increase in operating income for HDFS to $268.8 million.
The bottom line shows a net profit of $599.1 million in 2011 for Harley-Davidson compared to a profit of $146.5 million in 2010.
Harley-Davidson claims a 4.3% increase in market share in U.S. motorcycle sales for engine displacements higher than 651cc. Americans scooped up 151,683 Harley-Davidson motorcycles in 2011, a 5.7% increase from the 143,391 units sold in the U.S. in 2010. Sales also increased in Europe, Canada, Latin American and Asia, except for Japan which saw a drop.
Looking ahead, Harley-Davidson forecasts shipments of 240,000-245,000 motorcycles in 2012.