Harley-Davidson, Inc. announced that it will reduce the workforce at its Kansas City plant by 140 on June 30, 2013. The remaining 65 employees are being laid off. The move is all part of a new labor agreement signed in February 2011 that went into effect in August 2012. The agreement included reducing the overall full-time employment at the plant to about 540.

Harley-Davidson, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported that diluted earnings per share increased 33.8% on higher motorcycle shipments and continued improvement in operating efficiencies, compared to the year-ago period. The company reported net income of $224.13 million on revenue of $1.57 billion compared to net income of $172.03 million on revenue of $1.43 billion in the year-ago period. Diluted earnings per share were $0.99 compared $0.74 in the year-ago quarter. The company reported cash outflow from operating activities of $108.5 million compared to an outflow of $73.6 million in the year-ago quarter. Cash flow was affected by a $175 million voluntary contribution to its pension plan in the first quarter of 2013 and $200 million voluntary contribution in the year-ago period. Operating income was $348.31 million compared to $275.46 million reported a year ago. Income before income taxes was $338.53 million compared to $265.89 million reported a year ago. Capital expenditures were $22.26 million compared to $24.68 million reported a year ago. The company continues to expect to ship 259,000 to 264,000 motorcycles to dealers and distributors worldwide in 2013, an approximate 4.5% to 6.5% increase from 2012. The company continues to expect full-year 2013 gross margin of 35.25% to 36.25%. The company also continues to expect capital expenditures of $200 million to $220 million in 2013. The company continues to expect its full-year 2013 effective tax rate to be approximately 34.8%. Operating income will be modestly lower than 2012, as the business benefited from approximately $17 million of 2012 credit loss reserve releases, which may not repeat in 2013. SG&A spending will increase on a year-over-year basis in 2013 and 2014, as the company continue to invest in growth initiatives, but decrease as a percentage of revenue through 2014. In the second quarter of 2013, the company expects to ship 80,000 to 85,000 motorcycles, in line with shipments of 83,502 motorcycles in the year-ago period.

Harley-Davidson, Inc., Q1 2013 Earnings Call, Apr 25, 2013