H-D lowers 2007 production estimates due to union strike
As a result of the recently concluded three-week strike with workers at the company’s York, Penn., facility, Harley-Davidson says motorcycle production will be short roughly 14,000 units for 2007, a loss of approximately one month’s production.
“While we are pleased to have reached an agreement with our unionized employees in York, a disruption of this magnitude has a significant impact on our business, as well as our suppliers, dealers, employees and our retail customers,” said Tom Bergmann, H-D’s chief financial officer.
H-D has revised its first-quarter guidance to 64,000 to 66,000 units, down from its previous estimate of 82,000 to 84,000 units.
For the full 2007 fiscal year, H-D expects moderate revenue growth and lower margins compared to 2006 and earnings per share growth in the range of 4 to 6 percent for the current year. Also, it expects its EPS growth rate to return to between 11 and 17 percent in 2008 and 2009.
