BRIEFS
In another win for the powersports industry in the battle against tariffs , the Office of the United States Trade Representative decided in July not to impose additional trade restrictions on Vietnam , where small displacement motorcycles , riding gear and accessories are produced .
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<<< Continued from cover ' brand mate ' with a much lower priced LiveWire One model ; the Sportster S announced as the first in Harley ' s " allnew Sport category " air-cooled XL replacement range ; the introduction of the H-D Certified pre-owned program and , with these financials , confirmation of its dealer inventory and consumer sales H- D1 Marketplace online pre-owned buy / sell tool . In this context , Harley has every right |
Q2 ; -7 % YTD . Revenue from the Motorcycles and Related Products segment was up significantly during the second quarter , primarily driven by a 100 percent increase in wholesale |
volume gains behind lapping last year ' s COVID-19 related shutdown , improved motorcycle unit mix and lower restructuring expense . As a result of its Q2 performance , for the full year 2021 , the company now expects Financial Services segment operating income growth of 75 to 85 %, an increase from the previously communicated range of 50 to 60 % and GAAP Motorcycles segment operating income margin of 6 to 8 or 7 to 9 %, subject to the outcome of the |
Sources : AMD , IDN , FT , Reuters , PSB , MPN , BDN , MCN , AP , Bloomberg , MSNW , Electrek , electricmotorcycles . news , RideApart . com , Motor1 . com , Cycle World , motorbikewriter . com
New motorcycle registrations in Italy were down by -5.95 % in July ( ANCMA ) at 14,209 units , but were still running at + 40.43 % ( 88,776 units ) for the first seven months of 2021 . That is around 25k units ahead of the same period of 2020 , and the best market performance in Italy for the first seven months of the year since before the 2007 / 2009 financial crisis . Total new PTW registrations in Italy for the period ( all Powered Two-Wheeler vehicles ) were + 38.74 % ( 199,582 units ).
According to JAMA , exports of new <+ 250 cc motorcycles to the United States from the domestic Japanese ' Big Four ' brand factories were up in June 2021 at 5,437 units for the month and were running at + 98.66 % for the YTD at 36,009 units - higher than the same period of 2020 and 2019 but lower than 2018 and prior years . First half-year Japanese made motorcycle exports to USA peaked in 2006 at 216,725 units . Exports to Europe were also up in June at 12,579 units and were running at + 39.77 % YTD ( 106,824 units ). Global motorcycle exports from the domestic Japanese factories were + 46.08 % YTD at 178,439 units and + 51.71 % in total PTW ( Powered Two-Wheeler ) terms at 222,803 units .
New motorcycle registrations in the UK were down by -11.74 % in July ( MCAI ) at 11,556 units , but were still running at + 21.04 % ( 65,961 units ) for the first seven months of 2021 . That is around 10k units ahead of the same period of 2020 , but modestly up on the same period in 2019 - the best first seven-month market performance achieved in the UK since before the 2007 / 2009 financial crisis was the 71,623 new units registered YTD in 2016 . Total new PTW registrations in the UK for the period ( all Powered Two- Wheeler vehicles ) were + 21.00 % ( 69,944 units ).
Harley-Davidson sales revenue and production data … 2nd quarter 2021
Income statements in THREE MONTHS ENDED SIX MONTHS ENDED $ 1,000s ( except share ) 2021 Q2 2020 Q2 2021 Q2 2020 Q2
Net sales revenue |
$ 1,331,500 |
$ 669,274 |
$ 2,563,607 |
$ 1,769,062 |
Gross profit |
$ 407,051 |
$ 107,628 |
$ 827,536 |
$ 426,548 |
Total operating income |
$ 280,360 |
$( 116,099 ) |
$ 626,534 |
$( 8,586 ) |
Net income |
$ 206,340 |
$( 92,217 ) |
$ 465,484 |
$( 22,522 ) |
Diluted earnings per common share |
$ 1.33 |
$( 0.60 ) |
$ 3.01 |
$( 0.15 ) |
NET SALES REVENUE |
|
|
|
|
H-D Motorcycles |
$ 1,029,709 |
$ 446,738 |
$ 2,046,043 |
$ 1,346,103 |
Parts & Accessories |
$ 222,670 |
$ 168,708 |
$ 372,529 |
$ 303,393 |
General Merchandise |
$ 55,631 |
$ 37,805 |
$ 105,954 |
$ 86,965 |
Other |
$ 14,618 |
$ 11,120 |
$ 24,697 |
$ 19,669 |
MOTORCYCLE SHIPMENT DATA NOTE : H-D MOTORCYLE SHIPMENT DATA IS NOT THE SAME AS RETAIL REGISTRATIONS |
United States |
36,118 |
11,051 |
76,271 |
44,075 |
WORLDWIDE MOTORCYCLE SHIPMENTS |
Touring |
24,333 |
9,709 |
51,649 |
31,306 |
Cruiser |
20,966 |
11,874 |
41,434 |
32,005 |
Adventure Touring |
4,048 |
- |
4,048 |
- |
Sportster / Street |
7,321 |
6,786 |
14,347 |
18,031 |
Total |
56,668 |
28,369 |
111,478 |
81,342 |
RETAIL SALES OF H-D MOTORCYCLES : |
2021 Q2 |
2020 Q2 |
2021 Q2 |
2020 Q2 |
United States |
44,739 |
31,340 |
75,722 |
55,072 |
Canada |
3,446 |
2,287 |
5,245 |
3,753 |
EMEA Region |
10,248 |
10,964 |
15,191 |
18,694 |
Asia Pacific Region |
5,986 |
6,888 |
11,779 |
12,640 |
Latin America Region |
855 |
1,233 |
1,572 |
2,992 |
Total |
65,274 |
52,712 |
109,509 |
93,151 |
to be eyeing Wall Street reaction with a large slice of " WTF have we got to do ?!" - especially in the face of perfectly decent cash dividends of $ 0.15 per share in Q2 2021 . Global retail motorcycle sales in the second quarter were up 24 % [ 18 % YTD ], driven by a strong Q2 North America retail performance [+ 43 %]. EMEA Q2 retail sales declines [ -7 % Q2 ; -19 % YTD ] " were a result of the company ' s decision not to continue selling Street and legacy Sportster motorcycles in Europe . Latin America retail sales were impacted by a reduction in dealers [ -31 % in Q2 ; -48 % YTD ] and pricing actions across the portfolio , which were executed as part of the Rewire Strategy ." Asia Pacific retail unit sales were -13 % in shipments as the company lapped last year ' s COVID-19 related shutdown . Parts and Accessories second quarter revenue was up 32 %, while General Merchandise was up 47 % over Q2 2020 .
' starting to see initial proof points '
Second quarter gross margin was up 14.5 percentage points to Q2 prior year , while second quarter operating margin finished up 32 percentage points over Q2 prior year due to
EU tariff negotiations that are still ongoing following the Biden / EU summit in June . Motorcycles segment revenue growth is expected to be in the range 30 to 35 %, with capital expenditures of $ 190m to $ 225m . Harley additionally says that , given its strong cash position , it may also choose to execute discretionary share repurchases . Using 2019 comparables to better contextualize this year ' s performance , CFO Gina Goetter said that Q2 reported revenue was down 6 % versus 2019 , " primarily driven by the actions taken as part of the Rewire Strategy to prune unprofitable
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