Harley-Davidson bullish on new Street as earnings, market share rise
Harley-Davidson is bullish on the year just past and even more so on the year ahead.
Executives from the massively successful Milwaukee company told investors Thursday that fourth-quarter revenue and earnings were up over the same period last year, with robust activity expected for 2014.
They’re counting on continued strong sales from their traditional line, but also considerable new business from their new Street 500cc and 750cc motorcycles.
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That smaller, lighter, more fuel-efficient bike, the company believes, will develop a very broad new customer base of younger, more urban riders domestically and abroad. Specifically, Harley is targeting consumers not traditionally drawn to Harley -- women, African Americans and Latinos, and foreign buyers in Europe, Asia and Latin America.
“We’re giving people a gateway into the brand,” company President and Chief Operating Officer Matthew S. Levatich told the Los Angeles Times.
The company reported an increase in U.S. market share, to a record high of 54.9% of all U.S. new motorcycle retail sales. That puts Harley-Davidson 14% ahead of its nearest competitor in market share, the company said.
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Harley posted fourth-quarter net income of $75.4 million, up 6.8% from $70.6 million the year before. Revenue for the period climbed 2.1% to $1.03 billion.
Earnings for the full year rose 17.6% to $734.0 million from $623.9 million in 2012. In terms of unit sales, the company moved 260,839 new motorcycles worldwide, up from 249,849 in 2012. Retail sales for the year rose 4.4% in the U.S., 9.8% in the Asia Pacific region, 13.1% in Latin America and 4.6% in Canada.
Fourth-quarter diluted earnings per share increased 9.7% to 34 cents.
The company expects to increase distribution in 2014 by 7% to 9%, shipping as many as 284,000 motorcycles to dealers and distributors worldwide.
The new Streets will account for fewer than 3,000 of those, many of them headed for the company’s Riders Edge motorcycle training program -- another important part of Harley’s plan to find and develop new riders.
Dealers will be getting those bikes starting in spring, with units being shipped around the U.S. and also to emerging markets like India, Italy, Portugal and Spain.
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