Harley-Davidson, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Financial Guidance for the Year 2018
January 30, 2018 at 05:25 pm IST
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Harley-Davidson, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported motorcycles and related products revenue of $1,047,045,000 against $933,023,000 a year ago. Operating income from motorcycles & related products was $37,821,000 against $9,271,000 a year ago. Operating income was $101,495,000 against $69,410,000 a year ago. Income before income taxes was $94,827,000 against $62,599,000 a year ago. Net income was $8,314,000 against $47,179,000 a year ago. Earnings per diluted share was $0.05 against $0.27 a year ago. Net income and EPS were adversely impacted by a $53.1 million income tax charge related to the enactment of the 2017 tax cuts and Jobs Act and a $29.4 million pre-tax charge for a voluntary product recall.
For the year, the company reported motorcycles and related products revenue of $4,915,027,000 against $5,271,376,000 a year ago. Operating income from motorcycles & related products was $615,958,000 against $773,406,000 a year ago. Operating income was $891,263,000 against $1,048,936,000 a year ago. Income before income taxes was $863,839,000 against $1,023,911,000 a year ago. Net income was $521,759,000 against $692,164,000 a year ago. Earnings per diluted share was $3.02 against $3.83 a year ago. Net cash provided by operating activities was $1,005,061,000 against $1,174,339,000 a year ago. Capital expenditures were $206,294,000 against $256,263,000 a year ago.
The company expects its 2018 full-year effective tax rate to be approximately 23.5 to 25.0%, down considerably behind the expected benefit of the new tax legislation. The company anticipates 2018 capital expenditures of $250 million to $270 million which includes approximately $50 million to support manufacturing optimization. The company expects full-year 2018 operating margin as a percent of revenue to be approximately 9.5 to 10.5% including manufacturing optimization costs of $120 to $140 million.
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. The Company operates in three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS). HDMC designs, manufactures and sells Harley-Davidson motorcycles. HDMC also sells motorcycle parts, accessories, and apparel as well as licenses its trademarks. LiveWire segment sells electric motorcycles, electric balance bikes for kids, parts and accessories and apparel in the United States and certain international markets. HDMC conducts business on a global basis, with sales in the United States, Canada, Europe/Middle East/Africa (EMEA), Asia Pacific, and Latin America. HDMC's products are sold to retail customers primarily through a network of independent dealers. HDMC also distributes its motorcycles through an independent distributor in India. HDMC offers internal combustion engine motorcycles under the Harley-Davidson brand.
Harley-Davidson, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Financial Guidance for the Year 2018