Harley-Davidson Reports Q3 Results In Line With Estimates; Plans For Reorganization
Harley-Davidson (NYSE:HOG) reported year-over-year declines in revenue and earnings in Q3, but these results were in line with the consensus estimates. The company that is heavily reliant on its motorcycle shipments in the U.S. itself, is facing headwinds due to the shrinking demand in the home market. Harley reduced its shipment guidance after it was lower than expected in Q2, which was mostly affected by the weak U.S. demand. On the back of the reduced shipment guidance in view of the slow activity in the U.S. heavyweight motorcycle market, Harley is looking to reorganize and reduce its workforce to streamline functions, for which it will incur expenses of approximately $20 million to $25 million in Q4. The company previously announced that it was laying off casual workers in its U.S. plants.
Harley has always looked to keep supply in line with demand, and managed its inventory well in times of weaker demand. This step now is also in accordance with the trend of softer customer demand, which is expected to lower production levels at the iconic motorcycle maker’s facilities. The question remains if this is Harley being at the top of its game and eliminating extra costs while production slows, or if this reflects signs of tougher times to come.
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Have more questions on Harley-Davidson? See the links below.
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