Donegal, Harley-Davidson report Q2 earnings
A midstate insurance holding company and iconic motorcycle maker with midstate operations reported results this week for the second quarter of 2013.
East Donegal Township-based Donegal Group Inc. today reported net income of $2.6 million, or 10 cents per diluted Class A share, compared with net income of $2 million, or 8 cents per diluted Class A share, in the second quarter of 2012.
A single analyst had predicted earnings of 12 cents per Class A share, according to Yahoo Finance.
“Our achievement of overall growth and improved profitability for our insurance operations in 2013 illustrates the success of several of our key initiatives,” said Donald Nikolaus, Donegal’s president and CEO. “In particular, we continue to see strong commercial lines premium growth, with commercial lines writings rising to 42.3 percent of our total writings for the first half of this year. Commercial lines renewal premium increases remain in the 5-10 percent range on average, while new business growth within this sector continues to be strong.”
Donegal is a downstream insurance holding company. Its subsidiaries offer personal and commercial property and casualty lines of insurance in 22 states, including Pennsylvania.
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Milwaukee-based Harley-Davidson Inc., which has a factory site in York County, saw diluted earnings per share increase 13.1 percent due to higher motorcycle shipments and continued gains in operating efficiencies.
Harley-Davidson on Thursday reported net income of $271.7 million, or $1.21 per diluted share, compared with $247.3 million, or $1.07 per diluted share, in the second quarter of 2012.
Analysts had predicted earnings of $1.18, according to Yahoo Finance.
“During the second quarter, we completed our first year of seasonal surge production at York with great success,” said Keith Wandell, the company’s chairman, president and CEO. “We also surpassed a milestone for international dealership growth. With the opening of a dealership in Salvador, Brazil on June 29, we have added 104 dealerships outside the U.S. since late 2009, achieving our goal to add 100 to 150 international dealerships by the end of 2014.”
Through six months, dealers sold 144,447 new Harley-Davidson motorcycles worldwide, compared with 145,391 motorcycles in the year-ago period, according to Harley-Davidson. Retail unit sales were up 11.9 percent in the Asia Pacific region, 22.8 percent in the Latin America region and 2.4 percent in Canada.
Sales were down 2.7 percent in the U.S. compared with the first half of 2012.