Harley-Davidson to Close Three Facilities, Cut Jobs
Harley-Davidson Inc. is struggling to move motorcycles as the economy slows. The company plans jobs cuts and will close three facilities to reduce costs.
The company plans to cut 1,100 jobs and close three facilities to save at least $60 million a year, the Milwaukee-based manufacturer said. Revenue fell 6.8 percent to $1.29 billion. Harley wouldn't project 2009 earnings and said it's reducing shipments by as much as 13 percent to prevent excess inventory.
The cuts "are probably enough for them to be profitable, but probably don't go far enough to be optimal for current market conditions," said Ed Aaron, an analyst at RBC Capital Markets Corp. in Denver. "This is a capital consuming business in a bad credit environment." Aaron rates the shares "sector perform."
A WSJstory on Harley-Davidson's woes are primarily caused by its lending arm, Harley-Davidson Financial Services. You can read the full statement from Harley-Davidson here.
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