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Harley-Davidson Quarterly Profit Shrinks One-Third
Harley-Davidson Inc.'s net income slumped to $71 million in the fourth quarter of 2012 from $106 million in the same period a year earlier.
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Harley-Davidson Inc.'s net income slumped to $71 million in the fourth quarter of 2012 from $106 million in the same period a year earlier. Revenue slid 2% to $1 billion.
The company attributes much of the earnings decline to a production upgrade at its main assembly plant that cut motorcycle shipments 7% to 47,100 units.
For the full year, Harley's net profit rose 4% to $624 million despite $29 million in restructuring charges. Revenue grew 6% to $4.9 billion on a 6% increase in shipments to 247,600 motorcycles.
The company's operating income from financial services climbed 11% to $285 million in 2012.
Harley says its factory upgrade will enable it to boost shipments by as much as 6% to 264,000 motorcycles this year. That forecast includes a 10%-18% jump to as many as 76,000 units in the current quarter. The company expects to save $305 million this year from its restructuring actions since 2009.
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