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Harley-Davidson to cut more jobs as 1Q profit dips

By ASSOCIATED PRESS   Thursday, April 16, 2009 - 7:43 a.m.
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MILWAUKEE (AP) — Harley-Davidson Inc. said Thursday it expects to cut up to 400 more jobs as its first-quarter profit tumbled 37 percent due to a sluggish motorcycle market.

But the company beat Wall Street expectations and stood by its full-year forecast for motorcycle shipments, sending shares higher in premarket trading.

Harley, which is in the midst of a restructuring effort announced three months ago, said it planned to cut between 300 and 400 additional factory jobs over the next two years. That brings the total expected cuts to between 1,400 and 1,500 over that period.

"We don't make any job reduction decisions lightly," outgoing Chief Executive Jim Ziemer said in a statement. "But based on further planning since January and a deeper analysis of our production requirements, we have now determined that fewer production employees will be required."

Harley said it earned $117.3 million, or 50 cents per share, in the three months ended March 29, down from $187.6 million, or 79 cents per share, a year earlier.

Revenue slipped 2 percent to $1.29 billion from $1.31 billion.

The company said it took $57.4 million in one-time charges during the quarter due to restructuring costs and a change in Wisconsin tax law that occurred mid-quarter. Excluding these charges, the company earned 59 cents per share.

Wall Street analysts surveyed by Thomson Reuters expected lower earnings of 51 cents per share on $1.28 billion in sales, on average. Such estimates typically exclude one-time items.

Harley said it is standing by its plan to ship between 264,000 and 273,000 motorcycles to its dealers in 2009. The company announced the shipment guidance — which is a 10 percent to 13 percent decrease from 2008 shipments — three months ago.

Harley announces quarterly and yearly forecasts for motorcycle shipments, which provide industry watchers with a glimpse at how it expects sales to perform. The company aims to keep shipments in line with sales to prevent an inventory glut, which adds to costs and damages its coveted image.

Harley said it plans to ship between 55,000 and 59,000 motorcycles during the second quarter.

Shares of Harley-Davidson rose $1.07, or 6.2 percent, to $18.20 in premarket electronic trading on Thursday. Shares are up nearly 5 percent since the start of the year.




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(21)
kiowamohican
Apr 18, 2009 at 12:42 a.m.
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kinsohn:
As I keep saying. WHO NEEDS A JOB ANYMORE??
My God, we are being promised free health care, free education, free child care, free housing, tax rebates for those who don't even pay taxes (aka; welfare). Unemployment is being extended to the point it will soon be indefinite that you can collect. Hell, when the government takes over GM, we might even get free cars!! Why on earth does anyone need a job?? Just let all those morons who pay the taxes support the ones who sit on their butt and do nothing!
.
Socialism is a great thing until you run out of everyone else's money!
Just take advantage while it lasts and before the country goes bankrupt!

kinsohn
Apr 17, 2009 at 8:05 a.m.
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Actually, the absence of evil corporate profits we are seeing across the country is evidence we are entering a left-wing paradise. As we move more to the european model of economics that Obama is so well-versed on, we are going to have to learn to accept the accompanying higher taxes, higher unemployment, and sky-high deficits that always go with it. Most Americans don't realize that as bad as our unemployment rate is now (about 8%), this is about as good as it ever gets in europe. We are getting the change we as Americans voted for!

pat
Apr 17, 2009 at 6:40 a.m.
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no916 it was not Clinton. It was Reagan who refused to regulate the banks and wallstreet. To many buddies working there for him to take that step.. And oh my gosh bush and cheney were into the mess up to their elbows. What board did cheney sit on?

janesvillecomments
Apr 16, 2009 at 11:05 p.m.
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The Republican and Democratic Parties (both controlled by self-serving, pocket-lining, power-grabbing, immoral manipulators) would like to thank all the little people, the chumps who still believe THEIR party can do no wrong and the OTHER party can do no right, for continuing to swallow the bait on all their red-herring issues and distractions.
.
As they both continue to sell your country's wealth and heritage to the highest bidders, they can't help but to shed a crocodile tear for your unending, unswerving, and - most important of all - unthinking devotion to your false party gods and ferverently hope the majority of you never stop to listen to those small voices in the wilderness calling out for you to think for yourselves and vote for honest and honorable candidates instead of the bloated incumbent party hacks you continue to re-elect and elevate to higher office.

wiexguy
Apr 16, 2009 at 11:04 p.m.
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I wonder if everyone commenting here voted last week? And I wonder if the nay sayers here are going to run for a public office? If you answer no to either question, u should keep quiet! There appears to be lots of talk here, but little action. Thats the problem I see!!

kiowamohican
Apr 16, 2009 at 9:42 p.m.
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Wall Street has liked the moves harley has been making. The stock was up about 6% today alone, closing to around $18 a share on the news. Remarkably harley (HOG) has more then doubled if you were fortunate enough to buy in near the bottom of $8.00 just a few short months ago!! Just showing that lots can be made when timing the market correct.

916WI
Apr 16, 2009 at 9:04 p.m.
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repof1--huh? I can't stand democrats. They want the benefits of hard work without actually doing any of the work.......Sorry curtaincall--you're wrong--Wasn't Clinton the one who pushed his "everyone deserves to own a home agenda" regardless of whether or not they could actually afford it......That worked out really well for our economy, didn't it????:)

rep_of_1
Apr 16, 2009 at 5:58 p.m.
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916WI spoken like a true democrat! Everybody gets a Harley and a puppy next tax break.

pat
Apr 16, 2009 at 4:44 p.m.
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I don't suppose it would be possible to impeach Bush now?? Yeah I know wishful thinking. Must be nice to make a mess for someone else to clean up. I wonder how Bush sleeps at night.

curtaincall
Apr 16, 2009 at 4:35 p.m.
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Sorry it started with Reagan and his refusal to regulate WallStreet or the Big Banks.. The republicans are always so busy looking out for their rich buddies they forget who the majority of people are they represent.

916WI
Apr 16, 2009 at 3:45 p.m.
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Nope--it began after Reagan......8 years of the Clinton Administration is when the slide into what we are experiencing today has it's roots.......

curtaincall
Apr 16, 2009 at 3:31 p.m.
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thediplomat you are correct. I forgot to throw Reagan in there.. It will take time. Much time. These people who think he should have fixed this mess by now are a joke and have no clue.

thediplomat
Apr 16, 2009 at 12:55 p.m.
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curtaincall and Kay5,

You both need to take a class on Economics and Finance. You are both simplifying this way too much. This issue is a result based on the decisions of individuals that spans multiple presidencies. It also cannot be corrected in 4 months.

curtaincall
Apr 16, 2009 at 12:35 p.m.
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Its not his learning curve.. ITS Bush's arrogance and ignorance that cost this country. Obama is just cleaning up BUSH AND CHENEY'S MESS. Bush was so ignorant when it came to economics and wars

Kay5
Apr 16, 2009 at 12:19 p.m.
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Obama knows as much about economics as he does National defense. His learning curve is costing us taxpayers trillions.

916WI
Apr 16, 2009 at 10:50 a.m.
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Give Obama some time on this one people--I'm sure that taxpayer dollars will be used to subsidize the production of antiquated motorcycles in the very near future..........

janesvillean
Apr 16, 2009 at 9:31 a.m.
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Well, what do you think? Does the government make motorcycles?

monroemom
Apr 16, 2009 at 9:11 a.m.
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But the 4 million jobs are for bridges and roads.

kinsohn
Apr 16, 2009 at 7:51 a.m.
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I wouldn't worry too much about this: President Obama has promised us 4 million new jobs.

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