First-quarter net income for the Milwaukee-based company tumbled 37% amid charges and tax changes, but the company reaffirmed its target for motorcycle shipments for the year. Harley's shares were up 8.1% to $18.52 in Thursday afternoon trading on the New York Stock Exchange.
Weak consumer spending and troubled credit markets have pinched demand for big-ticket items, prompting Harley-Davidson to trim its dividend and lay off workers. It has been curtailing production for about a year and faces liquidity problems at its financial unit.
The company reported first-quarter net income of $117.3 million, or 50 cents a share, down from $187.6 million, or 79 cents, a year earlier. The latest results included $57.4 million in charges. Revenue slipped 1.2% to $1.3 billion as global retail motorcycle sales dropped 12%.
Analysts expected earnings, excluding items, of 51 cents a share on revenue of $1.3 billion, according to Thomson Reuters.
The company said Thursday it would cut another 300 to 400 hourly production jobs over the next two years in addition to the 1,100 job cuts it announced in January, producing some $120 million to $150 million in charges through 2010. The company expects to save up to $25 million this year and as much as $55 million in 2010.
U.S. sales dropped 9.7%, a narrower decline than the prior two quarters, a development that "mildly encouraged" the company, said Chief Executive Jim Ziemer. "We remain cautious and continue to expect 2009 to be an extremely challenging business environment," he said in a statement.
The company also picked up market share in the down market, Chief Financial Officer Tom Bergmann said in a conference call with investors. While overall U.S. sales of larger motorcycles tumbled 22%, Harley's share of that market rose to 57.8%, up eight percentage points from a year earlier, he said.
Operating income at the financial-services segment, roiled by the credit-market woes, dropped 68% amid $25.7 million in write-downs.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น