Harley Forecasts Fewer Motorcycles & To Shutter Kansas City Plant
Harley-Davidson Inc’s motorcycle shipments for 2017 came in at the lower end of its estimates, the company said on Tuesday, and forecast a drop in numbers for this year. For 2018, Harley-Davidson anticipates full-year motorcycle shipments to be approximately 231,000 to 236,000 motorcycles.
The motorcycle maker’s net income fell to $8.31 million, or 5 cents per share, in the fourth quarter ended Dec. 31, partly due to a charge related the new tax law. It earned $47.18 million, or 27 cents per share, a year earlier.
Revenue from motorcycles and related products rose to $1.05 billion from $933 million.
Harley also announced it is shutting down the assembly plant in Kansas City and moving its operations to its facility in York, Pennsylvania. About 800 employees currently work at the Kansas City facility. Some of the salaried employees reportedly will be offered positions at the Pennsylvania plant.
Harley-Davidson’s Softail, Sportster and Street motorcycles, were produced in Kansas City. Manufacturing of these models will be moved to York.
“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,” stated Matt Levatich, President and COO of Harley-Davidson, in the company’s final financial report of 2017.