Harley-Davidson Says Strike is Taking Toll on Production
Harley-Davidson said first-quarter motorcycle shipments will not meet earlier forecasts because of a six-day-old strike at its biggest assembly plant, sending shares down as much as 2.5%.
Harley will fall short of its shipment target of 82,000 to 84,000 motorcycles in the first quarter and said it is not prepared to offer a revised forecast.
The company also said it not prepared to predict whether the strike will affect the company's full-year financial forecast.
About 2,800 union workers walked off the job on Feb. 2 at Harley's plant in York, Pennsylvania, after their contract expired. Harley is seeking a variety of concessions from the workers, who are represented by the International Association of Machinists and Aerospace Workers.
A spokesman for Federal mediators said no talks were scheduled for today. Mediators met with the company and the union on Wednesday with no agreement.
Harley said it will begin layoffs next week at plants in Wisconsin that make motorcycle components. Initial layoffs will be voluntary, with involuntary layoffs possibly introduced later.