(RTTNews) - While reporting financial results for the first quarter, Harley-Davidson, Inc. (HOG) reported Tuesday that its total worldwide retail motorcycle sales in the quarter were down 17.7 percent to 40,439 units from last year. Motorcycle shipments also declined 10.0 percent to 52,973 units from last year.
Harley-Davidson U.S. retail motorcycle sales were down 15.5 percent from the year-ago quarter. Harley-Davidson's total international retail motorcycle sales were also down 20.7 percent from last year.
Additionally, the company's Board of Directors approved a sharply lower cash dividend of $0.02 per share for the second quarter of 2020, down from the first quarter 2020 dividend of $0.38. The second quarter dividend is payable June 12, 2020 to the shareholders of record of the company's common stock as of May 22, 2020. However, it suspended discretionary share repurchases.
The company also reduced planned capital spending across every part of the organization including freezing hiring, temporarily reducing salaries and eliminating merit increases for employees in 2020 as well as took other aggressive cost management efforts. In total, the company expects these efforts to preserve approximately $250 million of cash in 2020.
The company confirmed that it has restarted some manufacturing and will gradually ease work-at-home restrictions at the appropriate time, which will vary by region. It has also prepared and started implementing rigorous protocols and procedures for worker safety and is working with its supply chain to be ready to resume operations.
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