Jan 31 (Reuters) - Harley-davidson Inc HOG.N
* Says Q4 2016 shipments down 5,735 motorcycles Y-O-Y to support retail inventory reduction in the U.S.
* Says U.S. new retail motorcycle inventory was largely flat to prior year at end of Q4
* Says it limited model year 2017 motorcycle shipments to allow U.S. dealers to focus on selling model year 2016 inventory
* Says 2016 market share was up 1.0 percentage points to 51.2 percent
* Says the industry continues to be adversely affected by weakness in oil-dependent areas and soft used bike values, compounded by economic uncertainty
* Says saw increased year-over-year discounting by competitors in Q4
* Says expects shipments to be up Y-O-Y in Q2, Q3 and Q4 of 2017
* Says expects its international business to become bigger part of the mix in 2017 Further company coverage: HOG.N