Harley-Davidson Posts 4Q Loss, First in 16 Years
NEW YORK - Harley-Davidson Inc. reported a fourth-quarter loss Friday, its first quarterly deficit in 16 years, as restructuring costs and the sluggish economy wore on the motorcycle maker, reported The Detroit News. Its shares fell more than 5 percent in morning trading.
Harley-Davidson has spent the last year reorganizing its business to cope with falling demand of its high-end bikes. It has been laying off employees, closing factories and discontinuing or selling unwanted brands.
The company's results during the quarter ended Dec. 31 were worse than Wall Street was expecting. The company lost money -- its first three-month loss since 1993 -- even when accounting for only its continuing operations. It also lost money for the full year.
Harley-Davidson has been come under pressure over the last year as the tight credit markets and the weak economy led consumers to shun purchases of its high-end motorcycles. The company has been aggressively restructuring to cope with what it sees as a weaker market.
Last month, it announced it would close one of its two factories in York, Pa., and lay off nearly half the unionized work force there of about 1,950, reported The Detroit News. The York facility is Harley's main motorcycle production center, manufacturing its Touring and Softail bikes.
In October, Harley said it would sell the Italian premium sport-bike maker MV Agusta, which it acquired in 2008 for about $109 million. It also said it would discontinue its Buell line of sport bikes. Harley said it wanted to focus solely on its namesake motorcycles, on which it generates better returns.
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