Business World

Dark times for Harley as shares fall on Wall Street

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NEW YORK — Emblematic American motorcycle maker Harley-Davidson saw its share price dive Tuesday after the manufactur­er said it is likely to see a drop in shipments this year.

The company has long struggled with an aging customer base and dated product line, focused on snarling, heavy two-cylinder motorcycle­s.

The Milwaukee, Wisconsin manufactur­er saw sales fall 6.7% last year, with US sales down 8.5% while internatio­nal sales dropped 3.9%.

The company expects sales to fall another 3% to 5% in 2018.

Revenues sank 5.8% to $5.65 billion on global sales of 242,788 motorcycle­s which was a decline from 260,289 in 2016.

The company’s share price fell 8% on Wall Street Tuesday, putting the bike maker down 14% over the last year. During that period the S&P 500 transport sector gained 22%.

CEO Matt Levatich said Harley-Davidson is focused on efforts to hold down costs and “to be more aggressive and innovative” as it builds the brand.

The company will “sharpen our focus and scale our efforts to compete more effectivel­y in every market we’re in as we build Harley-Davidson riders,” he said during an investor call.

The company acknowledg­es the threat of European and Japanese competitio­n. It still holds more than half the US market for large motorcycle­s with engine displaceme­nts of 600 cc and above.

The company, founded in 1903, also plans to launch an electric motorcycle sometime in the next 18 months.

In the meantime, the company will close a factory in Kansas City, Missouri, eliminatin­g 800 jobs but will create 450 positions by moving some production to an existing facility in York, Pennsylvan­ia.

Harley-Davidson also plans to shut a wheel manufactur­ing plant in Adelaide, Australia, resulting in 100 layoffs.

President Donald Trump, who hosted company executives at the White House last year, has used Harley- Davidson to spotlight alleged protection­ist measures taken by some trading partners that harm US companies, such as India’s high import duties on foreign, large-cylinder motorcycle­s.

Levatich, however, said his company views the Chinese and Indian markets as growth opportunit­ies. —

 ??  ?? US PRESIDENT Donald Trump joking with reporters after greeting Harley Davidson executives and union representa­tives on the South Lawn of the White House in Washington, DC. Emblematic American motorcycle maker Harley- Davidson saw its share price dive...
US PRESIDENT Donald Trump joking with reporters after greeting Harley Davidson executives and union representa­tives on the South Lawn of the White House in Washington, DC. Emblematic American motorcycle maker Harley- Davidson saw its share price dive...

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