While motorcycle sales in the U.S. continue to decrease, Harley-Davidson Financial Services grew originations by 7.2% in the second quarter, the company announced in an earnings report.
Loan originations for new and used motorcycles increased to $1.06 billion compared with $987.7 million the same time the year prior. Overall, HDFS had a lower year-over-year provision for credit losses and the full-year outlook has improved.
The majority of HDFS measurable metrics remained relatively flat. Revenue grew by $100,000 to $188.1 million and outstandings dropped 0.3% to $7.5 billion. Delinquencies 30 days or more decreased notably to 3.09% of the portfolio compared to 3.25% year over year.
Harley Davidson Inc. projects that HDSF will finish 2018 flat to slightly increased.
On the retail side of things, Harley-Davidson Inc. sold 6.4% fewer bikes than the same time the year prior. This is in line with market expectations, according to a report from Robin Farley, a powersports analyst for UBS Investment Research.
“Our results in the second quarter reflect business performance that is in line with our expectations,” Matt Levatich, president and chief executive of Harley-Davidson, said in a press release. “With the focus of every employee and dealer, we are making progress building the next generation of Harley-Davidson riders in line with our long-term objectives.”
Retail strength in international markets has increased, with Harley-Davidson reporting sales growth in Europe. New bikes sales in Europe grew to 3.6% year over year. This international growth comes as Harley plans to move some of its production overseas in lieu of rising EU tariff costs, and the OEM outlined a strategy to grow its presence in foreign markets during the earnings call.
For news on the latest auto finance trends in China and beyond, Royal Media is hosting the Auto Finance Summit Asia at the Grand Hyatt Shanghai on September 5-6. For more information and to register, click here.Like This Article