Issue link: https://read.dmtmag.com/i/714189
46 nSeptember 2016n www.thunderpress.net THUNDER PRESS HARLEY-DAVIDSON REPORTS SECOND QUARTER 2016 EARNINGS Motor Company market share rises Industry remains soft MILWAUKEE, JULY 28―Harley- Davidson, Inc. (NYSE:HOG) second quarter 2016 diluted earnings per share increased 7.6 percent to $1.55 com- pared to diluted EPS of $1.44 in the same period in 2015. Net income was $280.4 million on consolidated reve- nue of $1.86 billion compared to net income of $299.8 million on consoli- dated revenue of $1.82 billion in last year's second quarter. Harley-Davidson worldwide retail motorcycle sales in the second quarter were down 1.9 percent on weak U.S. industry results. Harley-Davidson retail motorcycle sales in the U.S. were down 5.2 percent compared to the year-ago quarter, with the overall U.S. industry down 8.6 percent for the same period. Harley-Davidson U.S. market share for the quarter was 49.5 percent, an increase of 2.0 points over the same period in 2015. International retail sales increased by 4.3 percent over the prior year quarter. "We are pleased with our ability to gain market share in the U.S.," said Matt Levatich, President and Chief Executive Offi cer, Harley-Davidson, Inc. "Competitiveness in the U.S. remains intense, and our demand-driv- ing investments are showing traction." Through six months, Harley- Davidson's 2016 net income was $530.9 million on consolidated rev- enue of $3.61 billion compared to six-month 2015 net income of $569.7 million on consolidated revenue of $3.50 billion. Six-month 2016 diluted EPS was $2.91, up 7.4 percent from $2.71 in the year-ago period. Worldwide retail motorcycle sales were down 0.6 percent from the same period in 2015. International sales were up 4.4 percent, offset by a 3.4 percent decline in U.S. retail sales. Given market softness in the U.S., the continued competitive environment and global economic uncertainty, the company is taking the precautionary step of lowering its full-year shipment guidance. The company now expects to ship 264,000 to 269,000 motorcy- cles to dealers worldwide in 2016. This action is consistent with the company's long-standing commitment to manage supply in line with demand. "While our investments to grow product awareness and ridership glob- ally are beginning to take hold in a number of markets, current conditions in the U.S. and economic headwinds in other parts of the world combine to raise caution for us as we continue to focus our strategy to drive demand and deliver strong returns to shareholders," said Levatich. Retail Harley-Davidson Motorcycle Sales Retail sales in EMEA were up 8.2 percent in the second quarter and 8.4 percent for the fi rst six months behind a strong reception to the new 2016 motorcycle models and increased demand driving investments. Asia Pacifi c retail sales were up 0.8 percent in the quarter and up 3.4 percent for the fi rst six months compared to 2015. Canada retail sales grew 2.0 percent in the quarter and 7.2 percent for the fi rst six months versus a year ago as the market continued to respond favorably to the company's transition to direct distribution. Motorcycles and Related Products Segment Results Revenue from motorcycles and related products was up versus the prior quarter behind increased motor- cycle shipments. Operating margin as a percent of revenue decreased versus the prior year primarily as a result of lower than expected gross margin driven by unfavorable mix, currency and manufacturing expenses. Financial Services Segment Results Financial services operating income was higher in the second quar- ter compared to the year ago period driven by a $9.3 million gain gener- ated from a full securitization. Guidance Harley-Davidson is revising its full-year guidance for motorcycle shipments and now expects to ship 264,000 to 269,000 motorcycles to dealers worldwide in 2016, which is approximately down 1 percent to up 1 percent from 2015. The company had previously provided full-year shipment guidance of 269,000 to 274,000 motor- cycles. In the third quarter, the com- pany expects to ship 48,500 to 53,500 motorcycles compared to 53,472 motorcycles shipped in the year-ago period. The company now expects full-year 2016 operating margin of approximately 15 to 16 percent for the Motorcycles segment, compared to prior guidance of 16 to 17 percent. The company continues to expect 2016 capital expenditures for Harley- Davidson, Inc. of $255 million to $275 million. – Press release DAREDEVIL CITY Capital Evel Celebrate America's favorite stuntman with a visit to the world's largest collection of Evel Knievel memorabilia. Opening in 2016, The Evel Knievel Thrill Show & Museum at Historic Harley-Davidson will feature motorcycles, performance leathers and mementos from the death-defying daredevil. Connect with us to discover more than 20 other exciting things to see and do in Topeka, plus festivals and events. VisitTopeka.com/Evel | 800-235-1030