Harley-Davidson plans job cuts after earnings drop
New York — Harley-Davidson Inc. plans to cut an unspecified number of jobs and ship fewer motorcycles than it had planned for the year after reporting third-quarter earnings and revenue results that fell short of Wall Street expectations.
Its shares tumbled more than 12 percent in morning trading.
The company earned $140.3 million, or 69 cents per share, missing Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 78 cents per share.
Harley-Davidson maker reported a slight rise in revenue to $1.14 billion, but that also missed Street forecasts. Ten analysts surveyed by Zacks expected $1.21 billion.
Meanwhile, the company cut its guidance for motorcycle shipments for the year to between 265,000 and 270,000 from prior guidance of between 276,000 and 281,000.
Harley-Davidson also expects expenses of between $30 million and $35 million in the fourth quarter for employee separation and reorganization costs as it reallocates spending.
“Our ongoing commitment to manage supply in line with demand and maintain the premium nature of the brand remains a top priority for Harley-Davidson,” said President and CEO Matt Levatich, in a statement.
Its shares dropped $6.99, or 12.5 percent, to $49.06 in morning trading Tuesday. Its shares had dropped 15 percent through Monday since the beginning of the year, while the Standard & Poor’s 500 index has declined 1 percent. The stock has fallen slightly more than 4 percent in the last 12 months.