Harley-Davidson announces increased dividend, discusses job cuts
The Staff of Clutch and Chrome
April 28th 2008
Harley-Davidson, Inc., the Milwaukee motorcycle manufacturer announced on Friday that its Board of
Directors increased the dividend at the Annual Shareholder
Meeting in Milwaukee on April 26, 2008. All items of
business presented to shareholders were approved at the
meeting.
The Board of Directors of Harley-Davidson, Inc. approved a
cash dividend of $0.33 per share for the second quarter of
2008. The dividend is payable June 20, 2008, to shareholders
of record as of June 5, 2008. This represents an increase of
10% over the previous dividend paid on March 18, 2008.
At the meeting, Harley-Davidson Inc.'s chief executive officer James Ziemer told attendees
the decision to cut jobs was difficult.
"Excruciating is the word," Ziemer
said, "Make no mistake, I
agonized over this decision. In fact, it was one of the most
difficult decisions I've ever had to make."
The Milwaukee-based motorcycle manufacturer announced April
17 that it planned cut motorcycle production and slash 370
hourly production workers and 360 non-production employees
over the next several months as a result because the
sluggish U.S. economy has slowed demand for the company's
products.
"The erosion of consumer confidence in this country has
lasted longer and runs deeper than most economists
predicted," Ziemer told shareholders. "Very few businesses
have escaped the impact and the entire motorcycle industry
has been affected."
Ziemer said it's "undisputable" that the economic slowdown
in the United States has affected retail sales for
Harley-Davidson's dealers.
Harley plans to ship 23,000 to 27,000 fewer motorcycles in
2008 than in 2007, resulting in total planned 2008 shipments
of between 303,500 and 307,500 units.
"Our decision to reduce our motorcycle shipments and our
work force was driven by what our dealers have been
experiencing at retail along with the continuing turmoil in
the economy," Ziemer said. "I believe the actions we are
taking are the right actions. We have an obligation to our
dealers as well as all of our other stakeholders to manage
Harley-Davidson for the long term and that's what we are
doing in this situation." |
