PDA

View Full Version : Harley-Davidson axes 1,000 as profits hit skids




disorderlyvision
07-16-2009, 03:01 PM
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article6716392.ece


With top of the range models selling for $20,000, it was never going to be an easy ride for Harley-Davidson, which today announced plans to cut 1,000 jobs after second quarter profits plunged by 91 per cent.

Second-quarter income at the Milwaukee-based company fell from $222.8 million to $19.8 million from sales down 27 per cent to $1.15 billion.

Keith Wandell, president and chief executive of Harley-Davidson, said that the company had experienced a smaller sales decline than its competitors’ had. But he added: "It is obviously a very tough environment for us right now, given the continued weak consumer spending in the overall economy for discretionary purchases."

Harley now expects to ship between 212,000 and 228,000 motorcycles to its dealers and distributors worldwide in 2009, down between 25 to 30 per cent from 2008 shipments levels. It had previously expected to ship between 264,000 and 273,000. In the third quarter, it expects to ship between 52,000 and 57,000.

The company is reducing production to meet demand. Earlier this year the company announced plans to restructure its manufacturing plants and shed jobs.

Its financing arm Harley-Davidson Financial Services, posted an operating loss of $62.1 million in the second quarter, down from operating income of $37.1 million a year ago.

Shares of Harley-Davidson shares, which have fluctuated between $7.99 and $48.05 in the last year, fell 4.8 per cent to $17.49 in early trading.