By Christiana Sciaudone
Investing.com -- Harley-Davidson (NYSE:HOG) will cut 700 positions across global operations, with about 500 expected to exit in 2020.
HOG said it is overhauling its global operating model to become a “leaner, more nimble” organization.
Shares are down about 0.8% to $25.42, while the Dow is lower by 1.8%. HOG is trading at a price to earnings ratio of about 11, compared to about 23 on average for the Dow.
Changes include the exit of Chief Financial Officer John Olin (NYSE:OLN) after 17 years with the company. Vice President Treasurer Darrell Thomas will assume duties as interim CFO until a successor is appointed.
Restructuring costs should total about $42 million in the second quarter
Citigroup (NYSE:C) analyst Shawn Collins said on July 6 that the company is trading as if its declining sales will never recover, according to Barron’s. The stock’s cheap valuation and its new CEO make the stock a good bet, Collins said, initiating coverage of the stock with a buy.
HOG has eight holds, four buys and two sells, according to data compiled by Investing.com, with an average price target of $25.36.
“We’ve taken a hard look at our entire set up, our spending, and how work is getting done, to align our operating model, structure and processes,” said Jochen Zeitz, chairman, president and CEO of Harley-Davidson.”