The Q3 numbers are in for The Motor Company, and global motorcycle shipments grew 19% compared to last year as Harley-Davidson recovered from its unexpected production suspension in Q2. Revenue also grew 24% in the period, attributed to profitable unit growth and global pricing strategies. “Harley-Davidson delivered a strong third quarter with solid growth for both revenue and operating income, aligned to our Hardwire strategic initiatives,” claimed Jochen Zeitz, Chairman, President and CEO, Harley-Davidson.
“We are reaffirming our outlook for the year, and as we approach our 120th anniversary that we will be celebrating in our hometown Milwaukee and around the world, we are excited about the potential of Harley-Davidson, the most desirable motorcycle company in the world.” Talk of repurposing its Juneau Avenue HQ and LiveWire’s SPAC financing teething pains notwithstanding, the numbers in revenue and income were up.
Consolidated revenue was up 21% versus Q3 2021. HDMC revenue was driven by a strong recovery in global motorcycle shipments after being adversely impacted by an unexpected production suspension in Q2. Consolidated operating income growth of 66%, reflected 164% growth at HDMC and a decline of 24 percent at HDFS. In line with expectations, the HDFS decline was a result of a higher provision for credit losses as the credit environment normalizes, and higher interest expense.
However global motorcycle sales were still down in many markets. Overall global retail motorcycle sales were down 2% versus prior year. North America retail performance was down 5% as the market continued to be adversely impacted by lower dealer inventories. Retail performance strengthened during the quarter as dealer inventories replenished.
2022 Outlook
For the full year 2022, The Motor Company expects:
• HDMC revenue growth of 5% to 10%
• HDMC operating income margin of 11 to 12%
• HDFS operating income to decline by 20 to 25%
• Capital investments of $170 million to $190 million from a previously expected spend of $190 million to $220 million