IPFS News Link • Business/ Commerce
Harley-Davidson cuts shipments forecast; shares skid
• reuters.com By Ankit AjmeraThe Milwaukee-based motorcycle maker also said it would need to cut production in second half of 2017, resulting in hourly workforce reductions at some of its U.S. plants.
Harley's shares were down 9 percent at $47.17 in late morning trading on Tuesday.
While demand for new models has waned, the company has also taken a hit from used motorcycles being sold off by aging customers.
For the full year, Harley said it expects to ship 241,000 to 246,000 motorcycles, compared with 262,221 a year earlier. The company had previously forecast shipments to be flat to modestly down. That's a far cry from the nearly 350,000 it shipped a year about a decade ago.
"We are downgrading Harley-Davidson to 'market-perform' based on increased conviction that motorcycle demand in the United States is in the throes of secular erosion," Bernstein analyst David Beckel said.