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Harley-Davidson Q1 2014 EPS grew 22.2%

Staff writer ▼ | April 22, 2014
Harley-Davidson, Inc. first-quarter 2014 diluted earnings per share of $1.21 grew 22.2% from the year-ago period on higher motorcycle shipments and continued improvement in operating efficiencies.
Harley-Davidson
Harley-DavidsonHarley-Davidson, Inc. first-quarter 2014 diluted earnings per share of $1.21 grew 22.2% from the year-ago period on higher motorcycle shipments and continued improvement in operating efficiencies.


First-quarter net income was $265.9 million on consolidated revenue of $1.73 billion, compared to net income of $224.1 million in the year-ago period on consolidated revenue of $1.57 billion.

Dealers worldwide sold 57,415 new Harley-Davidson motorcycles in the first quarter of 2014 compared to 54,254 motorcycles in the year-ago quarter. In the U.S., dealers sold 35,730 new Harley-Davidson motorcycles in the quarter, up 3.0% compared to sales of 34,706 motorcycles in the year-ago period.

In international markets, dealers sold 21,685 new Harley-Davidson motorcycles during the first quarter, up 10.9% compared to 19,548 motorcycles in the year-ago period, with sales up 20.5% in the Asia Pacific region, 8.2% in the EMEA region and 8.9% in the Latin America region, and down 2.4% in Canada.

First-quarter operating income from motorcycles and related products grew 25.6% to $347.7 million, compared to operating income of $276.8 million in the year-ago period. Operating income in the quarter benefited from higher motorcycle shipments and higher gross margin compared to the prior-year period.

Revenue from motorcycles grew 13.1% to $1.31 billion, compared to revenue of $1.15 billion in the year-ago period. The Company shipped 80,682 motorcycles to dealers and distributors worldwide during the quarter, in line with guidance and a 7.3% increase compared to shipments of 75,222 motorcycles in the year-ago period.

Revenue from motorcycle parts and accessories was $198.1 million during the quarter, up 7.7%, and revenue from general merchandise, which includes MotorClothes apparel and accessories, was $64.1 million, down 11.1%, compared to the year-ago period.

Gross margin was 37.7% in the first quarter of 2014, compared to 36.7% in the first quarter of 2013. First-quarter operating margin from motorcycles and related products was 22.1%, compared to operating margin of 19.6% in last year’s first quarter.

Operating income from financial services was $63.2 million in the first quarter of 2014, an 11.7% decrease compared to operating income of $71.5 million in last year’s first quarter. First-quarter financial services results reflect a higher provision for credit losses.

Harley-Davidson continues to expect to ship 279,000 to 284,000 motorcycles to dealers and distributors worldwide in 2014, an approximate 7% to 9% increase from 2013. In the second quarter of 2014, the Company expects to ship 92,000 to 97,000 motorcycles, up from shipments of 84,606 motorcycles in the year-ago period.

The Company continues to expect full-year 2014 operating margin of 17.5% to 18.5% in the Motorcycles segment. The Company also continues to expect capital expenditures of $215 million to $235 million in 2014.


 

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