Woolworths gone bust

THE  retail giant Woolworths has gone into administration is the clearest sign yet that no company is immune from the stranglehold of the credit crunch. With 30,000 jobs now in peril at the High Street Store, Every High Street Store in the UK has to satisfy its customers to survive the cut-throat business that is the retail industry.

Harley to close for one week

Sep 15, 2007 — Harley-Davidson will cut production by closing its Springettsbury Township plant and others for one week this fall, the company said Friday.
The Milwaukee-based motorcycle maker, which continues to face low dealer sales, told its workers Friday that the company will shut down its final assembly plants in Springettsbury Township and Kansas City, Mo., for the week of Nov. 26.

In addition, Harley-Davidson will shut down its powertrain operations in Wauwatosa, Wis., and Menomonee Falls, Wis., and its Tomahawk Operations in Tomahawk, Wis., that week.
The company will not pay its employees during the shutdown, said Bob Klein, a spokesman for Harley-Davidson.

Workers laid off during the shutdowns will continue to receive health care coverage, company spokeswoman Rebecca Bortner said in an e-mail.

The manufacturer will recall all laid-off workers after the shutdown, Klein said.
“The company regrets the temporary impact the shipment reduction will have on so many of its employees as well as its dealers, suppliers and customers,” Bortner said in the e-mail.

Overall reduced consumer spending and low dealer sales in August are to blame for the production cuts, the company has said.

Harley Sales Drop!!!!

Harley-Davidson Inc. (NYSE:HOG) announced today that it will be cutting bike shipments and lowered its earnings estimates significantly for the fiscal year 2007. The Milwaukee-based company said that it anticipates earning $3.69 to $3.77 a share for the year. The company earned $3.93 per share in 2006. Analysts had predicted a climb in Harley's earnings this year, with the average estimate for 2007 prior to today's announcement sitting at $4.12 a share.

The earnings guidance from HOG is nothing short of dismal. It is extremely concerning that HOG is not only saying that August sales have tumbled, but also dramatically lowering 2008 estimates, and totally doing away with their guidance on 2009. This points that something bigger is going on at Harley-Davidson, not just a simple blip on the radar screen. The company is having trouble with operating margins and the demand for its newer products. HOG used to be a trusty stock that one could always count on, but it seems that the times have changed of late. I think investors would be wise to stay away from this company until they prove to be a worthy investment again.

Perhaps people are starting to get spooked with the current markets and the general uneasiness with all this talk of recession. The first thing to go in markets like that are the luxury items, like a $30,000 bike!