Operating income from motorcycles and related products grew 21.2 percent to $175.5 million in the third quarter of 2013, compared to operating income of $144.8 million in the year-ago period. Operating income in the quarter benefited from higher motorcycle shipments, higher gross margin and lower restructuring expense, compared to the prior-year period.
Operating income from financial services was $76.1 million in the third quarter of 2013, a 5.1 percent increase compared to operating income of $72.4 million in last year's third quarter. Financial services results reflect higher net interest income. Through nine months, operating income from financial services was $221.8 million, compared to operating income of $221.7 million through nine months in 2012.
|Earnings per share increased, due to higher motorcycle shipments and gains in plant operating efficiencies compared to this time one year ago.|
In the third quarter, the company incurred restructuring charges of $0.6 million. The company continues to expect restructuring activities initiated since 2009 to result in one-time overall costs of about $485 million, including about $3 million in 2013. The company continues to expect savings of about $305 million in 2013 from restructuring activities initiated since 2009, rising to annual ongoing savings of about $320 million beginning in 2014.
The news was good for shareholders as well as dealers. Earnings per share increased 23.7 percent to 73 cents, in line with analyst estimates. The company attributes gains to strong operating results in the motorcycles segment, including higher motorcycle shipments and gains in plant operating efficiencies, compared to the year-ago period. Third-quarter net income was $162.7 million on consolidated revenue of $1.34 billion, compared to net income of $134 million on consolidated revenue of $1.25 billion in the year-ago period.
Through nine months, Harley-Davidson net income was $658.6 million on consolidated revenue of $4.71 billion, compared to net income of $553.3 million on consolidated revenue of $4.41 billion in the year-ago period. Nine-month 2013 diluted earnings per share were $2.93, up 22.1 percent compared to $2.40 in the year-ago period.
"Everyone at Harley-Davidson is proud of our accomplishments and results so far this year, as we continue to see the benefits of our manufacturing, product development and retail strategies. Our employees, dealers and suppliers come to work every day with a relentless focus on providing our customers a great experience," Wandell said.