Harley-Davidson’s results for its full financial year to 31 December 2012 illustrate ongoing healthy recovery, with unit motorcycle sales and profit and up, although fourth-quarter performance was constrained.
In that final quarter, the brand’s global retail bike sales actually grew by 7.5 per cent to 43,405 units, with sales up 8.4 per cent in the US and 6.3 per cent overall in international markets. (But, within the latter, it should be noted that purely European sales fell by a striking 10.6 per cent to 5360 units.) However, wholesale shipments to dealers worldwide during the period were reduced by 7.2 per cent to 47,067 units on an inventory management basis and this was reflected in a 1.5 per cent revenue reduction from motorcycles and related products to £640.9m.
Nevertheless, total operating profit rose by 25.7 per cent to £73.6m, with a powerful contribution from financial services, and underlying net profit increased by 29.3 per cent to £44.8m. Headline net profit plunged by 33.2 per cent, though, because the previous year’s bottom line benefited from a large portion of one-off earnings from discontinued operations.
For the full year, Harley shipped 247,625 bikes into its global dealer network, a 6.2 per cent annual rise. Total worldwide retail sales also grew by 6.2 per cent to 249,849 units. Highlighting major details of that, the US and Canada put on 6.3 per cent, accounting for 172, 251 units. The Asia Pacific region climbed by 14.3 per cent to 24,481 units. At 10,090 units, Latin America was up by 39.2 per cent. The downside was Europe, losing 5.9 per cent to 37,027 units.
Annual revenue from motorcycles and related products grew by six per cent to £3.13bn, within total revenue up by five per cent to £3.54bn. Combined operating profit from bikes, parts, accessories and apparel increased by 27.5 per cent to £453.6m. Financial services delivered 5.9 per cent operating profit growth to £180.5m. For Harley as a whole, underlying net profit was impressive, up by 13.8 per cent at £395.6m. But, once again, this bottom line was significantly moderated by one-off input from discontinued operations in 2011. The real figure was a 4.1 per cent improvement.
“Thanks to the outstanding efforts of our employees, dealers and suppliers, Harley-Davidson achieved its growth and restructuring goals in 2012,” commented Harley chairman, president and chief executive Keith Wandell. “The ambitious restructuring of our manufacturing operations, aimed at delivering better responsiveness for customers and greater operating efficiency, is now largely behind us. Harley-Davidson’s purpose is to fulfill the dreams of personal freedom for people around the world. Through our strategy, we believe the company is poised to deliver on that purpose like never before.”
The company says that it expects to ship 259,000 to 264,000 bikes into its global network during 2013, a 4.5-6.5 per cent annual increase. The first quarter will be between approximately ten and 18 per cent up, with 71,000 to 76,000 units, reflecting a shipment plan based on implementation of seasonal surge production at its York plant in Pennsylvania during the first half of the year.