Strong 3Q for H-D, Polaris
October 31, 2011
Filed under Features
Harley-Davidson reported continued strong improvement in earnings and dealer retail sales in the third quarter of 2011 and through the first nine months of the year, compared to 2010.
Income from continuing operations in the third quarter rose 95.9 percent to $183.6 million compared to income of $93.7 million in the year-ago quarter. Third-quarter operating income from Motorcycles and Related Products grew 78 percent on higher shipment volume and operating margin improvement, while operating income from Financial Services grew 21.9 percent on continued improvement in credit performance, compared to the third quarter of 2010, according to the company.
Retail sales of new Harley-Davidson motorcycles grew 5.1 percent worldwide in the third quarter compared to the prior-year period, led by a 5.4 percent rise in the U.S.
For the first nine months of 2011, Harley-Davidson income from continuing operations was up 63.5 percent compared to the year-ago period to $493.4 million. Retail sales of new Harley-Davidson motorcycles through nine months grew 4.9 percent worldwide compared to the year-ago period.
“We are pleased with our sustained progress and we continue to realize strong momentum in the transformation our business,” said Keith Wandell, President and CEO of Harley-Davidson, Inc.
Record Q3 sales, net income for Polaris
Polaris Industries Inc. reported record third quarter net income of $67.6 million for the quarter ended Sept. 30, up 43 percent from the prior year’s third quarter net income of $47.2 million.
Sales for the third quarter 2011 totaled a record $729.9 million, an increase of 26 percent from last year’s third quarter sales of $580.1 million.
“Despite challenging economic conditions, we are pleased to report another record quarter of sales, net income and earnings per share,” Polaris CEO Scott Wine said. “I am exceptionally proud of how the Polaris team continued to drive growth and productivity in the third quarter. Each of our businesses experienced strong sales growth in the period, primarily driven by sustained market share gains. North American consumer retail demand for Polaris products remains vital, increasing 16 percent. We also once again improved our profitability, with healthy gross profit margin and net income margin increases when compared to last year.”
Wine also announced that the company’s Monterrey, Mexico manufacturing facility shipped its 10,000th side-by-side in the quarter. Wine also said that integration of Global Electric Motorcars (GEM) and Indian Motorcycle Company “is progressing according to plan, providing us with exciting new growth platforms.”