Harley-Davidson, Inc. (HOG – Analyst Report) reported an 11.1% year-over-year decline in earnings to $1.44 per share in the second quarter of 2015 from $1.62 recorded in the year-ago quarter. However, earnings beat the Zacks Consensus Estimate of $1.39.
The year-over-year fall was due to lower motorcycle shipments, which was a conscious decision by the company to keep supply on par with demand and manage the competitive pressure arising from currency impact in the U.S. Net income decreased to $299.8 million from $354.2 million a year ago.
Consolidated revenues declined 9.9% to $1.82 billion. However, the figure surpassed the Zacks Consensus Estimate of $1.66 billion. Operating income decreased 15.6% to $462.5 million from $547.7 million in the second quarter of 2014.
Motorcycles and Related Products
Revenues from Motorcycles and Related Products declined to $1.65 billion in second-quarter 2015 from $1.83 billion in the year-ago quarter. Operating income from Motorcycles and Related Products decreased to $380.6 million from $473.3 million a year ago. The year-over-year decline was due to unfavorable currency translation and lower motorcycle shipments.
Revenues from Harley-Davidson motorcycles fell 11.6% to $1.31 billion. Harley-Davidson shipped 85,172 motorcycles to dealers and distributors worldwide during the second quarter of 2015, compared with 92,217 shipments in second-quarter 2014.
Harley-Davidson's worldwide dealer retail sales of new motorcycles went down 1.4% to 88,931 units from 90,218 motorcycles sold in the year-ago quarter. Sales in the U.S dropped 0.8% to 57,790 motorcycles. International sales went down 2.7% to 31,141 motorcycles from 31,993 motorcycles sold in the prior-year quarter. An improvement of 16.6% in sales in the Asia-Pacific region was offset by an 8.9% fall in the Europe, Middle East, and Africa (“EMEA”) region, a 2.6% decline in the Latin America region, and a 9.9% decrease in Canada.
Revenues from Parts and Accessories decreased 5.4% to $256.8 million, while revenues from General Merchandise – which includes MotorClothes apparel and accessories – improved 1.5% to $77.5 million.
Harley-Davidson Financial Services (HDFS)
Revenues in the Financial Services segment rose 4.3% to $173.6 million in second-quarter 2015. Operating income increased 10% to $81.9 million from $74.4 million in the year-ago quarter, backed by favorable net interest income.
Financial Position
