Harley-Davidson Financial Services increased operating income by 20% year over year to $63.6 million in the first quarter of 2018, John Olin, senior vice president and chief financial officer of Harley-Davidson, Inc. said during the first quarter earnings call.
While income was higher year over year, originations were down 8.3% to $650.5 million compared to the same time the year prior. Outstandings remained flat at $7.3 billion, down just 0.2% year over year. The OEM expects that its financial arm will remain flat or drop modestly for the rest of the year.
Meanwhile, motorcycle revenue for the OEM was up 2.7% to $1.3 billion, despite a 9.7% decrease in motorcycle shipments. However, operating income in the motorcycle segment was down 26.9% to $172.8 million year over year.
“For the full year, we continue to expect retail sales to be down in the U.S. albeit at a slower rate than we experienced in 1Q,” Olin said on the call. “We expect U.S. declines to be partially offset by growth in international retail sales.”