™
OUR NOW IN
2Y4EtAhR
T H E # 1 B U S I N E S S M A G A Z I N E F O R T H E A M E R I C A N V- T W I N A N D C U S T O M M O T O R C Y C L E PA R T S I N D U S T RY
International sales growth rescues Harley's first quarter; EPS up on flat gross profits and reduced cash arley-Davidson has reported worldwide retail motorcycle sales in the first quarter up by +1.4 percent (57,458 units), with a +4.5 percent increase in international sales (+8.8 percent EMEA, +6.6 percent Asia Pacific) compensating for broadly flat domestic US demand (-0.5 percent, 35,326 units). International markets accounted for 38.52 percent of sales in the first quarter of 2016 (22,132 units in total) compared to 37.37 percent of sales in the first quarter of 2015 (21,173 units). EMEA remains Harley's largest international market, with sales of 10,210 units in the first quarter of 2016; the Asia Pacific region had its best first quarter ever with sales of 7,566 units. Despite domestic US sales being down again, Harley is saying that "retail sales trends have significantly
H
improved over previous quarters," and that "worldwide retail sales were driven, in part, by increased investments in marketing and new product introductions." Harley has managed to increase its first quarter 2016 diluted earnings
over 38 percent of sales international per share by +7.1 percent to $1.36 ($1.27 in the same period in 2015) on net income that is down by -7.2 percent ($250.5 million on consolidated revenue of $1.75 billion compared to net income of $269.9 million on consolidated revenue of $1.67 billion in last year's first quarter). Gross profit was up very slightly for
Typhoon
the first quarter, at $590.280m against $590.275m last year, on motorcycles and related products revenue that was up by +4.37 percent at $1,576.6m for the quarter, reflecting an increase in selling, administrative and engineering expenses that resulted in operating income from motorcycles and related products being down by -3.76 percent at $332.457million. Gross margin percent was down at 37.4 percent with operating margin percent down at 21.1 percent. Harley's total current asset position is improved on the year-end 2015 position, but is down compared to the first quarter 2015; cash and cash equivalents are down by -3.9 percent compared to the end of 2015 and down by -40.6 percent compared to the first quarter of 2015, with increased long-term debt reflecting the share repurchase activity that
MAY 2016 ISSUE #202
FREE INSIDE
Polaris first quarter results
Holley acquires ACCEL
Continued on page 8 >>>
Young English custom shop Old Empire Motorcycles entered the AMD World Championship of Custom Bike Building for the first time in 2014 and was rewarded with a top 20 place in the Freestyle class
CMYK
CMYK
PantoneÂŽ