Harley-Davidson Announces Second Quarter Results
MILWAUKEE, July 24, 2018 - Harley-Davidson, Inc. (NYSE:HOG) today reported second quarter 2018 results and announced it will share details about its accelerated strategy for growth on July 30, 2018.
Second Quarter 2018
EPS $1.45 ($1.52 excluding manufacturing optimization costs)
HDFS lower year-over-year provision for credit losses; full-year outlook improved
Dividend up versus prior year; repurchased 0.9 million shares
Growth in international retail sales
Manufacturing optimization initiative on track
Confirmed full-year shipment guidance
Strategy announcement set for July 30, 2018
Second quarter 2018 GAAP diluted EPS was $1.45. Excluding manufacturing optimization costs, diluted EPS was $1.52. Second quarter 2017 GAAP diluted EPS was $1.48. Second quarter 2018 net income was $242.3 million on consolidated revenue of $1.71 billion versus net income of $258.9 million on consolidated revenue of $1.77 billion in the second quarter of 2017.
Harley-Davidson international retail motorcycle sales were up 0.7 percent in the second quarter of 2018 compared to 2017 and U.S. retail sales were down 6.4 percent. Worldwide retail sales decreased 3.6 percent.
“Our results in the second quarter reflect business performance that is in line with our expectations. With the focus of every employee and dealer, we are making progress building the next generation of Harley-Davidson riders in line with our long-term objectives. Our manufacturing optimization, demand-driving investments and commitment to manage supply in line with demand remain on target and continue to strengthen our business,” said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc.
Strategy to Build Riders Globally
On July 30th, Harley-Davidson will share plans to accelerate its strategy to build the next generation of riders globally. Leveraging core strengths in the business, brand and dealer network, the company intends to invest in opportunities that inspire increased ridership sooner and deliver sustainable growth for the future. Harley-Davidson’s strategy supports the company’s 2027 objectives to: build 2 million new riders in the U.S., grow its international business to 50 percent of annual volume, launch 100 new high impact motorcycles and do so profitably and sustainably.
Harley-Davidson’s accelerated strategy will deliver:
New products -Keep current riders engaged and inspire a new generation of Harley-Davidson riders
Broader access - Meet customers where they are and how they want to engage with a multi-channel retail experience
Stronger dealers - Drive a performance framework to improve our dealer financial strength and the Harley-Davidson customer experience
The company believes its accelerated strategy is in line with and reinforces its objectives to drive revenue growth and expand operating margins. The company expects to fund strategic opportunities while maintaining its current investment and return profile and capital allocation strategy.
“We will take bold actions that better leverage our vast capabilities and competitive firepower -excellence in product development, manufacturing, brand and our great dealer network. We will motivate our existing loyal riders and inspire future riders who are not even thinking about two-wheeled freedom,” stated Levatich. “We are tapping into the spirit that drove our founders back in 1903. Our plan will redefine existing boundaries of our brand -
The following information was filed by Harley Davidson Inc (HOG) on Tuesday, July 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.