Harley-Davidson, an iconic American manufacturer based in Milwaukee, has decided to close one of its plants – the one in Kansas City. It is planned to close the Kansas plant and to cut the jobs in Springettsbury Township.
Harley-Davidson insists that closing the Kansas City plant was a uneasy decision, but it was necessary as U.S. sales are down. The company needed to address excess capacity, HD states. The sale figures in 2017 were really down: Harley-Davidson worldwide retail motorcycle sales were down 6.7 percent in 2017 compared to 2016. U.S. retail sales decreased 8.5 percent and international retail sales were down 3.9 percent.
The company however has managed to expand their operations if not sales figures in Asia and getting full use of 2017 Tax Cuts and Jobs Act.
The Company expects its 2018 full-year effective tax rate to be approximately 23.5 to 25.0 percent, down considerably behind the expected benefit of the new tax legislation. Harley-Davidson expects full-year 2018 operating margin as a percent of revenue to be approximately 9.5 to 10.5 percent including manufacturing optimization costs of $120 to $140 million.