Harley Davidson, Inc. (HOG) has reported a 25.60 percent fall in profit for the quarter ended Mar. 26, 2017. The company has earned $186.37 million, or $1.05 a share in the quarter, compared with $250.49 million, or $1.36 a share for the same period last year.
Revenue during the quarter dropped 14.17 percent to $1,501.93 million from $1,749.97 million in the previous year period. Gross margin for the quarter contracted 134 basis points over the previous year period to 91.97 percent. Total expenses were 80.59 percent of quarterly revenues, up from 77.78 percent for the same period last year. That has resulted in a contraction of 281 basis points in operating margin to 19.41 percent.
Operating income for the quarter was $291.48 million, compared with $388.83 million in the previous year period.
"First quarter U.S. retail sales were in line with our projections and we remain confident in our full-year plan despite international retail sales being down in the first quarter," said Matt Levatich, chief executive officer, Harley-Davidson. "We are very pleased with our continued growth in U.S. market share and the progress our U.S. dealers made in reducing their inventory of 2016 motorcycles in the quarter."
Operating cash flow improves significantly
Harley Davidson, Inc. has generated cash of $159.94 million from operating activities during the quarter, up 288.85 percent or $118.81 million, when compared with the last year period.
The company has spent $87.45 million cash to meet investing activities during the quarter as against cash outgo of $82.70 million in the last year period.
Cash flow from financing activities was $0.01 million for the quarter, down 99.89 percent or $10.28 million, when compared with the last year period.
Cash and cash equivalents stood at $839.70 million as on Mar. 26, 2017, up 20.99 percent or $145.69 million from $694.01 million on Mar. 27, 2016.
Working capital declines
Harley Davidson has witnessed a decline in the working capital over the last year. It stood at $1,681.18 million as at Mar. 26, 2017, down 11.69 percent or $222.56 million from $1,903.74 million on Mar. 27, 2016. Current ratio was at 1.66 as on Mar. 26, 2017, down from 1.74 on Mar. 27, 2016.
Cash conversion cycle (CCC) has decreased to 90 days for the quarter from 117 days for the last year period. Days sales outstanding went up to 141 days for the quarter compared with 129 days for the same period last year.
Days inventory outstanding has decreased to 171 days for the quarter compared with 424 days for the previous year period. At the same time, days payable outstanding went down to 402 days for the quarter from 436 for the same period last year.
Debt comes down marginally
Harley Davidson, Inc. has recorded a decline in total debt over the last one year. It stood at $6,971.22 million as on Mar. 26, 2017, down 1.99 percent or $141.55 million from $7,112.77 million on Mar. 27, 2016. Total debt was 67.80 percent of total assets as on Mar. 26, 2017, compared with 67.95 percent on Mar. 27, 2016. Debt to equity ratio was at 3.50 as on Mar. 26, 2017, down from 3.76 as on Mar. 27, 2016. Interest coverage ratio deteriorated to 37.99 for the quarter from 54.24 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
