Harley-Davidson’s financial results for the first three months of 2013 reveal a ten per cent rise in total revenue to £1.02bn, with net profit leaping by 30.3 per cent to £144.9m. The company attributed this good fortune to higher motorcycle shipments and continued improvement in operating efficiencies.
“With our focus on continuous improvement throughout our operations and providing outstanding products and customer experiences, we have continued to deliver gains in financial and competitive performance,” said Harley chairman and chief executive Keith Wandell. “The successful launch of seasonal surge production at our York assembly operations in the first quarter is the latest example of our efforts to drive greater efficiency and be even more responsive to the market.”
Operating profit from motorcycles and related products grew by 33 per cent to £178.9m. In addition, financial services activity (POS consumer and dealer inventory credit provision) posted a 6.1 per cent operating profit improvement to £46.2m. Revenue from motorcycles alone was up by 15.9 per cent to £743m. To achieve this, the brand wholesaled 75,222 bikes — a 17.1 per cent increase on the same period last year — into its global dealer network.
However, total worldwide retail sales fell by 9.1 per cent to 54,254 units during the quarter. In the US, dealers sold 12.7 per cent fewer machines at 34,706 units. International markets were a more marginal 1.8 per cent down at 19,548 units. Asia Pacific sales improved by 11.5 per cent and Latin America was up by 6.2 per cent. But Europe fell by 10.8 per cent.
Harley-Davidson continues to plan total wholesale shipments of 259,000 to 264,000 units in 2013, an approximate 4.5 to 6.5 per cent growth target.