STEADY GROWTH FOR HARLEY
Harley-Davidson’s full-year and fourth-quarter financial results to 31 December 2013 reveal increasing revenue, unit sales and profitability.
For the 12 months, global revenue increased by 5.7 per cent to £3.58m. Wholesale shipments to dealers worldwide during the period were 5.2 per cent up at 260,471 units.
Total retail motorcycle sales rose by 4.4 per cent to 260,839 units. Volume grew 4.4 per cent in the USA, 9.8 per cent in the Asia Pacific region, 13.1 per cent in Latin America and 4.6 per cent in Canada. However, Europe (including the Middle East and Africa) was down by one per cent.
Overall operating profit for the year climbed by 15.3 per cent to £700m. Within that, operating profit from motorcycles and related products stacked on 21.7 per cent to £528.2m. But there was a marginal 0.5 per cent decline in operating profit from the Harley-Davidson Financial Services division to £171.8m. This was attributed to increased provision for bad debts on consumer credit lending. The resultant 2013 net profit was up by 17.6 per cent to £445.4m.
For Harley’s fourth quarter, revenue improved by 1.7 per cent to £722m. Operating profit rose by 5.1 per cent to £74m. Net profit put on 6.8 per cent to £45.7m. The brand’s global retail bike sales volume in the final three months was up by 5.7 per cent to 45,875 units.
“Without question 2013 was an outstanding year,” said Harley-Davidson chairman, president and chief executive Keith Wandell. “We unveiled game-changing motorcycles, launched surge manufacturing, celebrated our 110th anniversary and delivered continued financial growth. Together with our dealers, we continue to broaden our customer base and inspire riders to experience our brand. In 2013, retail sales to outreach customers in the US grew at more than twice the rate of sales growth to core customers, and we continued to expand the reach of our brand in international markets.”
Harley plans to deliver 279,000 to 284,000 bikes to dealers worldwide during 2014, an approximate seven to nine per cent rise. In the first quarter, shipments will be in the region of 76,500 to 81,500 motorcycles, compared to 75,222 in the same period last year.