The iconic US motorcycle maker has reported a slowdown in third-quarter sales. It's hoping a multi-million-dollar investment could lead to a turnaround. But costly severance deals loom large on the horizon.
Legendary US motorcycle company Harley-Davidson said Tuesday its third-quarter net income was $140.3 million (123.4 million euros) on consolidated revenue of $1.32 billion, down from bottom-line earnings of $150.1 million in the same period a year earlier.
Dealers worldwide sold 72,178 new motorcycles from the iconic Milwaukee-based firm, a 1.4-percent drop from the level reached in the third quarter of 2014.
New sales were down 2.5 percent in the US itself, while they picked up slightly internationally (+0.9 percent).
Jobs at risk
The company announced there would be a $70-million increase in investment in 2016 year-on-year to drive demand and accelerate the production of new models.
Harley-Davidson added it expected to incur one-time expenses of at east $30 million in the fourth quarter of 2015 primarily against the backdrop of "employee separation and reorganization," meaning employees should brace for possible layoffs.
hg/pad (AFP, dpa)