Harley Falls Most in 6 Weeks After Missouri Plant LayoffsAlexandra Mondalek
Harley-Davidson Inc. fell the most in six weeks after the motorcycle maker said it will lay off 169 workers at a Kansas City, Missouri, factory.
The company notified Missouri state officials that the reductions will take effect May 11 and continue through Sept. 30, the Milwaukee Journal Sentinel reported Thursday evening.
Kristen Cunningham, a spokeswoman for Milwaukee-based Harley, confirmed the layoffs in an e-mail Friday and said they are intended to “align with overall production needs for the facility,” as well as a decision to outsource some work. She declined to comment on the stock price decline.
The share drop was an “overreaction” to the layoffs, which were part of a planned restructuring, Joseph Spak, an RBC Capital Markets analyst in New York, said in a note. Similar action at a Pennsylvania factory reduced costs, he said. RBC rates the stock outperform.
Harley slid 3.4 percent to $58.80 at the close in New York, the largest daily decline since Jan. 30. The stock, down 11 percent this year, dropped for a fourth straight day.