Harley-Davidson (HOG) Swings to Q4 Profit of 24c/Share, Sales Up 12%
In pre-market action Tuesday, shares of Harley-Davidson, Inc. (NYSE: HOG) are trading very modestly higher after the company reported its fourth quarter 2011 results earlier.
Quarterly retail sales of new Harley-Davidson motorcycles grew 10.9 percent worldwide to 40,359 new Harley-Davidson motorcycles. Total sales rose 11.8 percent to $1.03 billion; revenue from Motorcycles grew 13.5 percent to $791.9 million and revenue from Motorcycle Parts and Accessories rose 7.9 percent to $161.2 million. Analysts on the Street had been expecting Harley-Davidson to report sales of $1.01 billion.
Gross margin was 31.2 percent, compared to 29.6 percent in the fourth quarter of 2010. The operating margin from motorcycles and related products was 3.5 percent on operating income of $35.6 million.
Income from continuing operations was $54.6 million, or $0.24 per share, compared to a loss of $42.1 million, or $0.18 per share from continuing operations in the year-ago quarter. The Street’s consensus was calling for earnings of $0.23 per share.
As of December 31st 2011, the company had $1.526 billion in cash and cash equivalents, a 49 percent increase from December 31st 2010.
Harley-Davidson expects to ship 240,000 to 245,000 motorcycles to dealers and distributors worldwide in 2012, a 3 to 5 percent increase year over year. In the first quarter of 2012, the Company expects to ship 58,000 to 63,000 motorcycles.
For the full year, Harley-Davidson expects gross margin to be between 34.75 percent and 35.75 percent. The Company expects capital expenditures of between $190 million and $210 million in 2012, which includes approximately $25 million to support restructuring activities.
"Our improved performance in 2011 is the result of the tremendous efforts of all of our employees, dealers and suppliers," said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc. "At retail, we believe the solid improvement in new Harley-Davidson motorcycle sales reflects the strong appeal of our product lineup to a diverse customer base and the great efforts of our dealers, combined with results from our investments in growth opportunities across all regions and improved consumer confidence in the U.S. While we are encouraged by the retail sales trend, we continue to keep a close watch on the marketplace and remain cautious in our expectations for 2012."
Quarterly retail sales of new Harley-Davidson motorcycles grew 10.9 percent worldwide to 40,359 new Harley-Davidson motorcycles. Total sales rose 11.8 percent to $1.03 billion; revenue from Motorcycles grew 13.5 percent to $791.9 million and revenue from Motorcycle Parts and Accessories rose 7.9 percent to $161.2 million. Analysts on the Street had been expecting Harley-Davidson to report sales of $1.01 billion.
Gross margin was 31.2 percent, compared to 29.6 percent in the fourth quarter of 2010. The operating margin from motorcycles and related products was 3.5 percent on operating income of $35.6 million.
Income from continuing operations was $54.6 million, or $0.24 per share, compared to a loss of $42.1 million, or $0.18 per share from continuing operations in the year-ago quarter. The Street’s consensus was calling for earnings of $0.23 per share.
As of December 31st 2011, the company had $1.526 billion in cash and cash equivalents, a 49 percent increase from December 31st 2010.
Harley-Davidson expects to ship 240,000 to 245,000 motorcycles to dealers and distributors worldwide in 2012, a 3 to 5 percent increase year over year. In the first quarter of 2012, the Company expects to ship 58,000 to 63,000 motorcycles.
For the full year, Harley-Davidson expects gross margin to be between 34.75 percent and 35.75 percent. The Company expects capital expenditures of between $190 million and $210 million in 2012, which includes approximately $25 million to support restructuring activities.
"Our improved performance in 2011 is the result of the tremendous efforts of all of our employees, dealers and suppliers," said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc. "At retail, we believe the solid improvement in new Harley-Davidson motorcycle sales reflects the strong appeal of our product lineup to a diverse customer base and the great efforts of our dealers, combined with results from our investments in growth opportunities across all regions and improved consumer confidence in the U.S. While we are encouraged by the retail sales trend, we continue to keep a close watch on the marketplace and remain cautious in our expectations for 2012."