During the first quarter Harley-Davidson’s profit increased 30% as global shipments went up.
Harley-Davidson announced that during the first quarter it has earned $224.1 million (99 cents per share), an increase from $172 billion (74 cents per share) during the same period last year. Earnings went up due to the lower costs caused by the restructuring strategy and the 17% increase in motorcycle shipments. Revenue was up almost 10% to $1.57 billion from $1.43 billion.
The company shipped during the first quarter more than 75, 000 motorcycles, an increase from 64,000 during the same period last year. Harley said it expects to deliver this year between 259,000 and 264,000 motorcycles, up 4.5% to 6.5% from 2012 and second quarter deliveries are to be between 80,000 units and 85,000 units, around the same level as last year when it shipped 83,502 units during Q2.
Harley-Davidson said that in the first quarter it had $2.9 million worth of restructuring charges, from $11.5 million in 2012. Restructuring is expected to be done sometime this year and reach a total spending of $13 million. This means that since 2009 until now costs have hit $495 million, but the restructuring is supposed to translate into savings of $305 million this year.
Source: Detroit Free Press