Harley-Davidson Reports Sharp Decline in Sales in 2017
Chase Stallo

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Harley-Davidson Reports Sharp Decline in Sales in 2017

Harley-Davidson announced on Tuesday it will move ahead with a plan to consolidate manufacturing operations after sales fell sharply in 2017.

The Milwaukee-based company announced the consolidation of its Kansas City, Missouri, plant into its York, Pennsylvania, plant, resulting in the loss of 800 jobs in Kansas City, according to the Journal Sentinel

"The decision to consolidate our final assembly plants was made after very careful consideration of our manufacturing footprint and the appropriate capacity given the current business environment. Our Kansas City assembly operations will leave a legacy of safety, quality, collaboration, and manufacturing leadership," Matt Levatich, president and chief executive officer of Harley-Davidson, Inc., said.

Harley said its net income fell 82 percent in its fiscal fourth quarter to $8.3 million, down from $47.2 million a year earlier. Earnings per share were 5 cents, down from 27 cents a year earlier, while revenue was $1.23 billion, up from $1.11 billion.

Harley said “net income and EPS were adversely impacted by a $53.1 million income tax charge related to the enactment of the 2017 Tax Cuts and Jobs Act and a $29.4 million pre-tax charge for a voluntary product recall.”

U.S. retail sales decreased by 8.5 percent, per the company. International retail sales were down 3.9 percent.

"Our actions to address the current environment through disciplined supply and cost management position us well as we drive to achieve our long-term objectives to build the next generation of Harley-Davidson riders globally," Levatich said. "We finished 2017 with 32,000 more Harley-Davidson riders in the U.S. than one year ago, and we delivered another year of strong cash generation and cash returns to our shareholders."

In an effort to build more customers globally, Harley added 57 new international dealers in 2017. According to the company, U.S. dealers trained more than 62,000 riders through the Harley-Davidson Riding Academy last year.

For 2018, Harley-Davidson anticipates full-year motorcycle shipments to be approximately 231,000 to 236,000 motorcycles.

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