Harley-Davidson, Inc. (HOG) has reported an 11.81 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $47.18 million, or $0.27 a share in the quarter, compared with $42.20 million, or $0.22 a share for the same period last year.
Revenue during the quarter dropped 5.93 percent to $1,110.60 million from $1,180.64 million in the previous year period. Gross margin for the quarter contracted 136 basis points over the previous year period to 25.82 percent. Total expenses were 93.75 percent of quarterly revenues, down from 94.31 percent for the same period last year. This has led to an improvement of 56 basis points in operating margin to 6.25 percent.
Operating income for the quarter was $69.41 million, compared with $67.22 million in the previous year period.
"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," said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc. "We are energized by our resolve to compete and win in the U.S. and in major international markets. Our market share performance gives us great confidence in the strength of our long-term strategy."
Operating cash flow improves
Harley-Davidson, Inc. has generated cash of $1,174.34 million from operating activities during the year, up 6.75 percent or $74.22 million, when compared with the last year. The company has spent $392.73 million cash to meet investing activities during the year as against cash outgo of $915.85 million in the last year.
The company has spent $734.39 million cash to carry out financing activities during the year as against cash outgo of $354.06 million in the last year period.
Cash and cash equivalents stood at $759.98 million as on Dec. 31, 2016, up 5.23 percent or $37.78 million from $722.21 million on Dec. 31, 2015.
Working capital declines
Harley-Davidson, Inc. has witnessed a decline in the working capital over the last year. It stood at $991.29 million as at Dec. 31, 2016, down 19.45 percent or $239.29 million from $1,230.58 million on Dec. 31, 2015. Current ratio was at 1.35 as on Dec. 31, 2016, down from 1.45 on Dec. 31, 2015.
Debt remains almost stable
Harley-Davidson, Inc. has recorded a decline in total debt over the last one year. It stood at $6,807.57 million as on Dec. 31, 2016, down 0.94 percent or $64.63 million from $6,872.20 million on Dec. 31, 2015. Total debt was 68.83 percent of total assets as on Dec. 31, 2016, compared with 68.78 percent on Dec. 31, 2015. Debt to equity ratio was at 3.55 as on Dec. 31, 2016, down from 3.74 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.01 for the quarter from 9.31 for the same period last year.
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