(Source: Associated Press/AP Online)
MILWAUKEE - Harley-Davidson Inc. said Thursday that its third-quarter profit slid 84 percent on fewer motorcycle shipments and recession-related difficulties in getting loans for its customers.
The motorcycle manufacturer also plans to stop making Buell motorcycle products and will sell its MV Agusta division.
Its shares fell 76 cents, or 2.9 percent, to $25.50 in electronic premarket trading.
Harley-Davidson - which has implemented production and job cuts this year - earned $26.5 million, or 11 cents per share, for the period ended Sept. 27. That's down from $166.5 million, or 71 cents per share, a year ago.
Sales dropped 21 percent to $1.12 billion from $1.42 billion, but its retail motorcycle sales decline of 21.3 percent was not as steep as the previous quarter's 30.1 percent dropoff.
Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, forecast profit of 21 cents per share on revenue of $1.1 billion.
Harley-Davidson said the economic downturn has crimped the retail and wholesale loan performance of lending arm, Harley-Davidson Financial Services. The unit has struggled as tighter credit markets have made it harder for customers to get loans.
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