American Motorcycle Dealer AMD 224 March 2018 - Page 6

<<< Continued from cover shipments, resulting in an increase in operating margin as a percent of revenue compared to the same period in 2016.” For 2018, Harley says it anticipates fullyear motorcycle shipments to be approximately 231,000 to 236,000 motorcycles – down by between -2 and -4 percent. In the first quarter of 2018, Harley said it expected to ship approximately 60,000 to 65,000 motorcycles. The annual figures somewhat camouflaged a dramatically disappointing final quarter of 2017, one theoretically underpinned by the new M-8 engined Softails becoming available at dealerships. Harley-Davidson Iron 1200 Harley-Davidson Forty-Eight Special "2017 international retail sales -3.9 percent" 6 AMERICAN MOTORCYCLE DEALER - MARCH 2018 The company’s worldwide retail motorcycle sales were down -6.7 percent in 2017 compared to 2016, with domestic U.S. retail sales down - 8.5 percent, while international retail sales fared better at down -3.9 percent. Harley’s release went on to say that “as the company executed against its longterm objective to build the next generation of Harley-Davidson riders globally, 57 new international dealer points were added in 2017, and U.S. dealers trained more than 62,000 riders through the Harley-Davidson Riding Academy. The company also maintained its number one 601+cc motorcycle market share position in Harley-Davidson sales revenue and production data… 4th quarter 2017 Income statements in THREE MONTHS ENDED TWELVE MONTHS ENDED $1,000s (except share) DEC 2017 DEC 2016 DEC 2017 DEC 2016 Net sales revenue $1,047,045 $933,023 $4,915,027 $5,271,376 Gross profit $323,261 $286,809 $1,653,344 $1,851,666 Total operating income $101,495 $69,410 $891,263 $1,048,936 Net income $8,314 $47,179 $521,759 $692,164 Diluted earnings per common share $0.05 $0.27 $3.02 $3.83 NET SALES REVENUE Figures are shown THREE MONTHS ENDED TWELVE MONTHS ENDED in $1,000s DEC 2017 DEC 2016 DEC 2017 DEC 2016 H-D Motorcycles $801,726 $685,047 $3,825,206 $4,122,113 Parts & Accessories $168,131 $169,445 $804,363 $842,637 General Merchandise $71,236 $72,919 $262,776 $284,583 Other $5,952 $5,612 $22,682 $22,043 MOTORCYCLE SHIPMENT DATA NOTE: H-D MOTORCYLE SHIPMENT DATA IS NOT THE SAME AS RETAIL REGISTRATIONS United States 26,475 20,131 144,893 161,839 Exports 20,723 22,283 96,605 100,382 Total H-D 47,198 42,414 241,498 262,221 PRODUCT MIX DEC 2017 DEC 2016 DEC 2017 DEC 2016 Touring 19,353 17,943 99,745 107,410 Custom 19,651 14,852 87,344 93,422 Sportster 8,194 9,619 54,409 61,389 RETAIL SALES OF H-D MOTORCYCLES: DEC 2017 DEC 2016 DEC 2017 DEC 2016 United States 23,195 26,077 147,972 161,658 Canada 1,318 1,257 10,081 10,203 Europe 6,462 6,734 39,773 39,942 Asia Pacific Region 7,720 8,748 30,348 32,889 Latin America Region 2,449 2,637 9,452 9,701 Total 42,142 46,610 242,788 260,289 countries including the U.S., Canada, Japan, Australia and India for 2017.” When asked, the company was unable to say how many of these new riders had bought a Harley-Davidson motorcycle as a result of their Riding Academy training. It went on to state that it remained “fully committed to investing in product development to inspire new riders through redefining its product in traditional spaces and expanding into new spaces. The company is on target to launch its first electric motorcycle within 18 months. Today, the company announces it will invest more aggressively to lead in the application of electric motorcycle technology to inspire ridership among a new audience.” CEO Matt Levatich added that “the EV motorcycle market is in its infancy today, but we believe premium Harley- Davidson electric motorcycles will help drive excitement and participation in the sport globally. As we expand our EV capabilities and commitment, we get even more excited about the role electric motorcycles will play in growing our business.” For the record, ACEM, the Brussels based international motorcycle industry trade association for Europe, says that (for the 28 member states of the European Union) a mere 4,121 electric motorcycles were registered in the whole of 2017; plus 27,029 electric mopeds (equivalent to 50cc and smaller units) and a further 3,242 electric “quadricycles”. That is in a market of some 360 million consumers of riding age, where development of acceptance of and demand for E-bikes is at least a decade or more ahead of the United States; and in a continent where the concept of Urban Mobility is well understood and heavily promoted by regulators as a potentially major contributor to environmentally friendly and congestion busting, future facing transportation policy. www.AMDchampionship.com >>> <<< Continued from cover shipments, resulting in an increase in operating margin as a percent of revenue compared to the same period in 2016.” For 2018, Harley says it anticipates full- year motorcycle shipments to be approximately 231,000 to 236,000 motorcycles – down by between -2 and -4 percent. In the first quarter of 2018, Harley said it expected to ship approximately 60,000 to 65,000 motorcycles. The annual figures somewhat camouflaged a dramatically disappointing final quarter of 2017, one theoretically underpinned by the new M-8 engined Softails becoming available at dealerships. Harley-Davidson Forty-Eight Special The company’s worldwide retail motorcycle sales were down -6.7 percent in 2017 compared to 2016, with domestic U.S. retail sales down - 8.5 percent, while international retail sales fared better at down -3.9 percent. Harley’s release went on to say that “as the company executed against its long- Harley-Davidson Iron 1200 "2017 international retail sales -3.9 percent" term objective to build the next generation of Harley-Davidson riders globally, 57 new international dealer points were added in 2017, and U.S. dealers trained more than 62,000 riders through the Harley-Davidson Riding Academy. The company also maintained its number one 601+cc motorcycle market share position in Harley-Davidson sales revenue and production data… 4th quarter 2017 Income statements in $1,000s (except share) Net sales revenue Gross profit Total operating income Net income Diluted earnings per common share THREE MONTHS ENDED TWELVE MONTHS ENDED DEC 2017 DEC 2016 DEC 2017 DEC 2016 $1,047,045 $323,261 $101,495 $8,314 $933,023 $286,809 $69,410 $47,179 $4,915,027 $1,653,344 $891,263 $521,759 $5,271,376 $1,851,666 $1,048,936 $692,164 $0.05 $0.27 $3.02 $3.83 NET SALES REVENUE Figures are shown in $1,000s H-D Motorcycles Parts & Accessories General Merchandise Other MOTORCYCLE SHIPMENT DATA United States Exports Total H-D PRODUCT MIX Touring Custom Sportster RETAIL SALES OF H-D MOTORCYCLES: United States Canada Europe Asia Pacific Region Latin America Region Total 6 THREE MONTHS ENDED TWELVE MONTHS ENDED DEC 2017 DEC 2016 DEC 2017 DEC 2016 $801,726 $168,131 $71,236 $5,952 $685,047 $169,445 $72,919 $5,612 $3,825,206 $804,363 $262,776 $22,682 $4,122,113 $842,637 $284,583 $22,043 NOTE: H-D MOTORCYLE SHIPMENT DATA IS NOT THE SAME AS RETAIL REGISTRATIONS 26,475 20,723 47,198 DEC 2017 19,353 19,651 8,194 DEC 2017 23,195 1,318 6,462 7,720 2,449 42,142 AMERICAN MOTORCYCLE DEALER - MARCH 2018 20,131 22,283 42,414 144,893 96,605 241,498 DEC 2016 DEC 2017 17,943 14,852 9,619 99,745 87,344 54,409 DEC 2016 DEC 2017 26,077 1,257 6,734 8,748 2,637 46,610 147,972 10,081 39,773 30,348 9,452 242,788 161,839 100,382 262,221 DEC 2016 107,410 93,422 61,389 DEC 2016 161,658 10,203 39,942 32,889 9,701 260,289 countries including the U.S., Canada, Japan, Australia and India for 2017.” When asked, the company was unable to say how many of these new riders had bought a Harley-Davidson motorcycle as a result of their Riding Academy training. It went on to state that it remained “fully committed to investing in product development to inspire new riders through redefining its product in traditional spaces and expanding into new spaces. The company is on target to launch its first electric motorcycle within 18 months. Today, the company announces it will invest more aggressively to lead in the application of electric motorcycle technology to inspire ridership among a new audience.” CEO Matt Levatich added that “the EV motorcycle market is in its infancy today, but we believe premium Harley- Davidson electric motorcycles will help drive excitement and participation in the sport globally. As we expand our EV capabilities and commitment, we get even more excited about the role electric motorcycles will play in growing our business.” For the record, ACEM, H\[˜\Y[\][ۘ[[ܘXH[\BYH\X][ۈ܈]\K^\]܈H Y[X\]\وB]\X[[[ۊHHY\H LH[XX›[ܘX\\HY\\Y[BHو M\ H[XX›[Y \]Z][[ L[X[\[]H[H\\ [XX¸']XYXX\'K]\[HX\]وYH ͌Z[[ۂۜ[Y\وY[YK\B][Y[وX\[Hو[[X[܈KXZ\\]X\HXYB܈[ܙHZXYوH[]Y]\[[H۝[[\HHۘ\ق\[[ؚ[]H\[[\[X][H[YHY[]ܜ\B[X[HXZ܈۝X]܈™[\ۛY[[HY[H[ۙ\[ۈ\[]\HX[[ܝ][ۈXKːSQ[\[ۜ\