Harley Reports Positive First Quarter Earnings and Sales

Worldwide Retail H-D Motorcycle Sales Rise More than 5%

In a welcome bit of good news for our industry, last week, Harley-Davidson, Inc. (NYSE: HOG) reported that its first-quarter 2014 diluted earnings grew 22.2% from the year-ago period thanks to a higher number of motorcycle shipments as well as continued improvement in operating efficiencies. First-quarter net income was $265.9 million, up from $224.1 million a year ago.

“Harley-Davidson delivered gains on many fronts... with shipments up 7.3%, strong margin improvement and solid growth in new motorcycle sales,” said Keith Wandell, Chairman, President and Chief Executive Officer of Harley-Davidson, Inc. According to Wandell, “Project RUSHMORE motorcycles were in high demand in the quarter and we began shipping the Harley-Davidson Street 750 and 500 into select markets.”

Retail Harley-Davidson Motorcycle Sales

Dealers worldwide sold 57,415 new Harley motorcycles in the first quarter of 2014 compared to 54,254 motorcycles in the year-ago quarter. In the U.S., 35,730 new Harleys were sold in that quarter, up 3.0% compared to 34,706 motorcycles in the same time frame one year ago. In international markets, dealers reportedly moved 21,685 new H-D motorcycles during the first quarter, up 10.9%. Sales numbers were also up in the Asia Pacific and Latin America regions, but down 2.4% in Canada.

“We’re also excited to be entering the heart of the retail selling season in the U.S., having achieved first-quarter retail growth of 3.0% in the midst of a long, cold winter,” said Wandell.

In the report, Harley also revealed its demographic market share data for 2013. In 2013, Harley-Davidson was the number-one seller of on-road motorcycles in the U.S., across all displacements, to young adults age 18-34, women, African-Americans and Hispanics and Caucasian men age 35-plus, according to Polk 2013 U.S. new motorcycle registration data from IHS Automotive. It's the sixth consecutive year the Company led in those categories. Harley also says it grew its U.S. market share and increased its share gap to the nearest competitor in each of these segments, compared to 2012.

Harley's 2013 demographics chart shows increased interest from the non-core ridership (young adults age 18-34, women, African-Americans and Hispanic riders)

Harley-Davidson

Harley expects to ship 279,000 to 284,000 motorcycles to dealers and distributors worldwide in 2014, or approximately 7% - 9% more than in 2013.