Harley-Davidson Sees Flat Margin, Weak Shipment In FY17 As Q4 Profit Misses View

(RTTNews) - Harley-Davidson Inc. (HOG) Tuesday said it anticipates fiscal 2017 operating and gross margin as a percent of revenue to be approximately in line with 2016.

The company expects full-year motorcycle shipments to be flat to down modestly in comparison to 2016. In the first quarter of 2017, Harley-Davidson expects to ship approximately 66,000 to 71,000 motorcycles.

The company anticipates 2017 capital expenditures of $200 million to $220 million.

Matt Levatich, president and chief executive officer, said, "The global competitive environment remains intense, but our 2016 results demonstrate that our increased investments to drive demand and bring impactful new products to market are working."

In the fourth quarter, net income was $47.2 million, higher than $42.2 million last year. Earnings per share grew 22.7 percent to $0.27 from $0.22 last year. Consolidated revenue of $1.11 billion declined from $1.18 billion in the year-ago period.

On average, analysts polled by Thomson Reuters expected earnings of $0.31 per share on revenues of $972.47 million for the quarter. Analysts' estimates typically exclude special items.

In the fourth quarter, worldwide retail sales of new Harley-Davidson motorcycles declined 0.5 percent, behind modest declines in some international markets partially offset by slight growth in the U.S.