Harley Davidson 2011 Annual Report Download - page 20

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In 2011, Harley-Davidson’s revenue from motorcycles and related
products on a continuing operations basis increased 11.6 percent to
$4.66 billion compared to 2010. Income from continuing operations
increased 111.1 percent from the prior year to $548.1 million,
reflecting improved operating margin for the Company’s motorcycle
business, strong operating income at Harley-Davidson Financial
Services and a lower effective tax rate.
Revenue from sales of Harley-Davidson motorcycles was
$3.55 billion in 2011, an increase of 13.3 percent compared to 2010 on
a 10.7 percent increase in shipments of Harley-Davidson motorcycles.
Revenue from Genuine Parts and Accessories in 2011 totaled
$816.6 million, a 9.0 percent increase compared to the previous year,
and General Merchandise revenue was $274.1 million, a 5.8 percent
increase compared to 2010.
During 2011, Harley-Davidson continued taking actions to make
transformational changes in the areas of product development,
manufacturing and retail. Harley-Davidson expects restructuring
activities announced since 2009 to deliver between $315 million
and $335 million in annual ongoing savings upon completion of
those restructuring activities.
Harley-Davidson’s share price increased 12.1 percent during
2011 and the Company paid out dividends of $.475 per share in 2011.
Harley-Davidson has paid a dividend every year since 1993.
Harley-Davidson Motorcycles
Worldwide retail sales of Harley-Davidson motorcycles by independent
dealers increased 5.9 percent in 2011 compared to 2010.
In the United States, 2011 retail sales increased 5.8 percent to 151,683
Harley-Davidson motorcycles and overall U.S. heavyweight (651+ cc)
market registrations increased 4.3 percent. For the full year 2011,
retail sales of Harley-Davidson motorcycles in international markets
increased 6.1 percent compared to 2010. For the same period, retail
sales of Harley-Davidson motorcycles increased 7.7 percent in the
Europe Region, 17.5 percent in the Latin America Region, 2.0 percent
in the Asia Pacific Region and 1.2 percent in Canada.
In 2011, the Company shipped 233,117 Harley-Davidson motorcycles
worldwide, compared to 210,494 in 2010. In 2011, 34.7 percent of the
Harley-Davidson motorcycles shipped went to international markets,
compared to 37.5 percent in 2010.
Harley-Davidson Financial Services
Financial Services recorded operating income of $268.8 million compared
to $181.9 million in 2010. HDFS’ results benefitted from a lower cost of
funds and improved credit performance compared to the prior year.
18 Harley-Davidson, Inc. 2011 Annual Report
Motorcycle and Related Products Revenue Distribution
Dollars in millions
#"
OTHER ($200.2)
#
OTHER ($17.1)
%&&
U.S. ($3,155.6)
%'
EUROPE ($781.4)
#(
JAPAN ($229.4)
""
CANADA ($154.3)
&$
PARTS & ACCESSORIES ($816.6)
"
AUSTRALIA ($141.4)
$(
GENERAL MERCHANDISE ($274.1)
&%!
MOTORCYCLES ($3,554.5)