Harley-Davidson says motorcycle shipments during its second quarter, ended June 29, totaled 80,326 units, down 15.6 percent compared to shipments of 95,117 units during the same three-month period last year.
Worldwide retail sales of Harley-Davidson motorcycles decreased 3.6 percent compared to the prior year second quarter. Retail sales of Harley-Davidson motorcycles decreased 8.7 percent in the U.S. but grew 11.2 percent in international markets — up 9 percent in Europe; 8.7 percent in Canada; 7.3 percent in the Asia Pacific Region; and 67.1 percent in the Latin America Region.
Business Line Results
Harley-Davidson, Inc. total revenue for the recently ended second quarter was $1.57 billion, down 2.9 percent compared to revenue of $1.62 billion during the same three months last year. Net income was $222.8 million, down 23.3 percent compared to $290.5 million in the year ago quarter.
Revenue from Harley-Davidson motorcycles was $1.19 billion, a decrease of $67 million or 5.3 percent versus the same period last year. Revenue from parts and accessories (P&A), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $265.7 million, an increase of $2.3 million or 0.9 percent over the year-ago quarter. Revenue from general merchandise, which consists of MotorClothes, apparel and collectibles, totaled $76.8 million, an increase of $4.1 million or 5.6 percent over the year-ago quarter.
Harley-Davidson Financial Services (HDFS) reported second quarter operating income of $37.1 million, a decrease of $28.1 million or 43 percent compared to the year-ago quarter. The decrease is primarily due to a $19.5 million reduction in securitization gain and a $6.3 million write-down of retained securitization interests. Last year's second quarter benefited from a $950 million securitization transaction compared to no securitization transaction during the second quarter of 2008.
For the first six months of 2008, shipments of Harley-Davidson motorcycles were 152,194 units, a 6.6 percent decrease compared to shipments of 162,878 units during the first six months of 2007.
Harley-Davidson motorcycle revenue for the first six months of the year was $2.20 billion, up 2.7 percent compared to revenue of $2.15 billion during the same six-month period last year; P&A revenue totaled $447.6 million, down 0.9 percent; and general merchandise revenue totaled $160.8 million, up 8 percent.
HDFS operating income was $72.1 million, a 42 percent decrease from last year's $124.1 million.
The Motor Company expects to ship between 74,000 and 78,000 Harley-Davidson motorcycles during the third quarter of 2008. For the full year of 2008, Harley-Davidson still plans full year shipments of between 303,500 and 307,500 units.
"We expect U.S. economic conditions and ongoing consumer concerns to continue to create challenges at least through the end of the year," said CEO Jim Ziemer. "We believe the actions we took to reduce shipments to our U.S. dealers and our related workforce reduction position us appropriately for the current economic environment. I am confident about our future as we continue to manage and reinvest in the business for the long term."
"Last week, we announced our planned acquisition of the MV Agusta Group and celebrated the grand opening of the Harley-Davidson Museum. Next Tuesday, we introduce our exciting new 2009 motorcycles. A month from today, we kick off our 105th Anniversary Celebration with the launch of the first of 105 motorcycle rides to Milwaukee from around the U.S. These are just some of the ways we are positioning the company for the future, strengthening bonds with current customers and reaching out to new customers," Ziemer said.