YORK COUNTY, Pa. -- Harley-Davidson's earnings report was released Thursday morning and the news is not good.


The company's second-quarter earnings plunged 91 percent and the motorcycle maker said that it will cut an additional 1,000 jobs. About 180 jobs are expected to be cut at the York County plant.


The company said that a decision on the York County plant will come later this year.

"The Company will implement a further reduction this year of approximately 700 positions in the hourly production workforce. Harley-Davidson will also be reducing the non-production, primarily salaried headcount by an approximate 300 additional positions," a company news release states.

The Company states that it plans to offer a voluntary separation incentive package to eligible salaried employees.

Year to year, the company's net income has plummeted. Net income for the second quarter of 2009 was $19.8 million, compared to $222.8 million in the second quarter of 2008.

News 8 could learn Thursday if any of those jobs are in York County.

Also in the report is a possible glimpse at Harley's future in York County.


In early 2009, Harley-Davidson introduced the Iron 883. With a starting price below $8,000 it was designed to be more affordable than many of its bikes.

The company said "since the announcement of the original consolidation plans in January, Harley-Davidson has determined the company's York operations are not currently competitive or sustainable."

The company said that a decision on the York County plant will come later this year.

It's understandable.

MC's are a luxary item for most folks. In hard times those are the types of items that drop off the kitchen table when your doing the finances.

The availabitly of loans may also factor into the company's downturn.

Doc

WELL, I CANT SAY I AM SURPRISED.IMHO, THEY PRICED THEMSELVES RIGHT OUT OF THE MARKET. BACK ABOUT 8 YEARS AGO, WHEN I USED TO WORK FOR HARLEY DAVIDSON, I TOLD A FEW PEOPLE THAT THIS WOULD HAPPEN. ALL IT WOULD TAKE WAS A SMALL FINANCIAL STRAIN OF THE ECONOMY AND HD WOULD BE IN TROUBLE.
THOUGH I PERSONALLY AM NOT A HARLEY GUY, I HOPE THEY CAN RALLY AFTER THIS AND STAY AFLOAT.

MAYBE THEY SHOULD CO TO CONGRESS FOR HELP, THEY SEEM TO LIKE GIVING AWAY MONEY.

They made money... 19.8 mil for the quarter. A lot of business can not say that at the moment. The rest of the article also noted they dropped a smaller percentage of sales than the rest of the motorcycle market for the same period. That would indicate that their pricing has has little or no effect on previous sales volumes. It's purely a market condition. "Harley's U.S. retail sales during the quarter fell 35 percent, the company said. Industry wide sales were worse, falling 48 percent". So while they have been hit hard by the economy they are holding up pretty well.

Motorcycles and cars are really not that much different when times get tough, folks hold on to what they have for a longer period than they would normally and buy fewer new vehicles. What's happeneing to Harley sales wise isn't any different than the auto industry.

Looks like I spoke to soon. My apologies to Harley Davidson.

And Java is correct. While total sales are down HD market shares are up.
Here is a good link.

http://seekingalpha.com/article/149278-harley-davidson-q2-2009-earnings-call-transcript

I, personally, hate to see ANY American company suffer......we all suffer when this happens. Although I haven't looked at anything to support my suppositions I would imagine Yamaha is suffering just as badly or maybe even worse than HD.
Realistically we have to admire HD for what they have done with their company after the employees took over (right after AMF).
Realistically, too, we (or at least I) have to admit that I would own a HD is I had the cash. They are pricey, but they are a good product, and they hold their resale value much better than out R*'s. JMHO

Hey, I figure it's like any other market... auto, housing, etc... there's only so many people to buy so many items... After that, the maket is saturated...
And, I gotta say.. with all the H-Ds I see on the road... It;s easier to count the riders who DON't ride a Harley...

Man, you think Harley's earnings suck, try Indian's? Those poor guys came back at the worst time ever! I am like many, I love a Harley but, just CAN'T see paying for a toy that cost more than my car!?!?! These days, the mystique about a Harley rider is "Damn, how can he afford that thing?" Harley is not immune to the problems of the world. They will be back! Hang in there York County!!!!!

It's hitting the KC plant also. snippet of an article in the KCStar:
Companywide, the job cuts will total 1,000 employees, including the 460 laid off here. Workers will also be laid off in Wisconsin, and a Harley factory there, as well as one in York, Pa., will also be temporarily idled.

About 700 of the 1,000 layoffs will be production workers and the rest will be salaried employees, said Pat Sweeney, a company spokeswoman.

In Kansas City, a union official said 10 salaried employees will be let go.

The union workers won’t get any monetary severance package, but they will keep health benefits for one year, said Tony Wilson, president of Machinists Local Lodge 176.