Harley-Davidson to Halt Vehicle Assembly and Shipping for 2 Weeks
2022.05.19 21:42
By Sam Boughedda
Investing.com — Harley-Davidson Inc (NYSE:HOG) stated on Thursday that the bike maker would halt all vehicle assembly and shipping for two weeks due to a components issue with a third-party supplier.
The halt will not apply to its electric vehicle division.
The supplier notified Harley of a regulatory compliance issue involving a component part.
Shares of Harley-Davidson tumbled 9.23% following the announcement on Thursday.
After announcing its first-quarter earnings in April, the company reported that its first-quarter income declined due to supply chain issues. Operating income fell 16% due to production challenges, with supply chain inflation and semiconductor chip shortages.
Those supply chain issues caused production shortages in North America, impacting sales in the region which declined by 5%.
Harley-Davidson stated in its earnings release that despite ongoing supply chain disruptions and the macro environment, it is optimistic for the second half of the year and that its outlook remained positive, with revenue expected to increase 5% to 10%.
