Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[MJZ]

Just ran across this article posted today from AP:

Harley-Davidson idles 5,400 workers this week in production cut
By EMILY FREDRIX AP Business Writer
Article Last Updated: 11/26/2007 06:37:22 PM EST

MILWAUKEE—Some 5,400 Harley-Davidson Inc. workers are out of work this week as the motorcycle maker cuts production because of falling sales.

The Milwaukee-based company announced in September it would shut down production at plants in Wisconsin, Kansas City, Mo., and York, Pa., this week as part of a planned cut in production.

A shorter layoff is better than a long one, said Frank Larkin, a spokesman for the International Association of Machinists and Aerospace Workers, which represents workers at Harley-Davidson plants. At least workers were able to prepare for it, he said.

"We were informed early on this was being proposed and we were able to relate to our members they would need to begin planning financially for one week without a paycheck," he said.

Employees will still receive benefits during the week, he said.

Harley-Davidson spokesman Bob Klein said the plant in York, Pa., the company's largest, has 2,800 workers idled this week.

There are about 1,750 workers idled in Wisconsin at power-train operations in Wauwatosa and Menomonee Falls and another in Tomahawk. The Kansas City, Mo., plant has 850 workers idled.

Workers in Pennsylvania weren't fazed by the shutdown, said Tom Boger, the business representative for the International Association of Machinists and Aerospace Workers Local 175 union. He said it was short and they had time to prepare.

"People seem to be OK with it," he said. "It seems to be just no
Advertisement
problem."

Boger also said the shutdown was well-timed to go with the start of deer hunting season in Pennsylvania, meaning workers wouldn't have to take days off to hunt.

Last month, Harley-Davidson reported its third-quarter profit fell 15.3 percent amid a continued sluggish U.S. market for motorcycles. The company said it expects next year to be difficult, too, as domestic buyers become more cautious about their spending given rising oil prices and slumping home sales.

The company cut bike shipments and earnings expectations in September. Shipments were down 10.8 percent to 86,535 units in the most recent three-month period.

Harley-Davidson expects full-year shipments to be between 328,000 and 332,000 units, down from 349,196 units last year.

Shares of Harley-Davidson fell 8 cents, or 0.17 percent, to close at $46.45 on Monday.

[JCZ]

They could boost sales if they'd cut some of that deep profit margin they have built in.  Naw......the MoCo doesn't want it to come off of their side.

[Hugh Janis]

They could boost sales if they'd cut some of that deep profit margin they have built in.  Naw......the MoCo doesn't want it to come off of their side.

That would cut their dollar per earnings during a time of decreasing sales.  Share holders would never go for that.  The only way for them to cut costs and maintain margins is to furlough employees and decrease production.  Lowering prices to stimulate sales makes sense to you and me but publicly owned companies are run differently than private.  Giving away potential dollars by lowering prices without lowering cost would ruin their wall street rating and their stock price would fall which in turn devalues the MoCo.

[mr_magoo]

How about biulding a QUALITY bike.  Maybe invest in a new painter that can actually paint.

[RJ749]

Boger also said the shutdown was well-timed to go with the start of deer hunting season in Pennsylvania, meaning workers wouldn't have to take days off to hunt.


Now that's good planning

[FNGw/08SERK]

Boger also said the shutdown was well-timed to go with the start of deer hunting season in Pennsylvania, meaning workers wouldn't have to take days off to hunt.


Now that's good planning

The UAW International gave away Veterans Day as a Paid Holiday several years ago, during contract negotiations, in exchange for opening day of deer season. Looks like the MoCo took a page from their playbook!?!  I found that disrespectful to veterans FWIW. Just my .02 

[Break-In]

It's all about the mighty Dollar

[RJ749]

It's all about the mighty Dollar

HD hasn't been minding the shop as we have all indicated in many threads and the stock value continues to show it.

[Texas 103]

HD hasn't been minding the shop as we have all indicated in many threads and the stock value continues to show it.

Looks like a damn good time to short it>>>>Greg

[RJ749]

Looks like a damn good time to short it>>>>Greg

 IMO that would guarantee it would have a run up if I did it.

[JCZ]

How about biulding a QUALITY bike.  Maybe invest in a new painter that can actually paint.

What a concept!   Just don't think Harley has gotten to this idea just yet, Dave.

I've had HOG stock (was HDI) for years and sold it all a few months back, for the first time in twenty years.  Glad I did.