Harley-Davidson reported a 45% drop in quarterly profits as motorcycle sales were hit by the global coronavirus pandemic.
The US manufacturer said Covid-19 had “dramatically changed” its business environment and it would need to make widespread cost-cuts.
Net income fell to $70m (£56m) in the first three months of the year, from $128m in the same period last year. The Milwaukee-based company said global sales in the first quarter fell 18% to 40,439 motorcycles.
Jochen Zeitz, acting president and chief executive of Harley-Davidson, said: “Covid-19 has dramatically changed our business environment and it is critical we respond with agility to this new reality.
“We have determined that we need to make significant changes to the company; to our priorities, to our operating model and to our strategy to drive more consistent performance as we emerge from this crisis.”
The company said it was talking to major US banks to secure an additional $1.3bn in liquidity. News of plans to make cash savings of $250m in 2020 helped to drive shares higher on Tuesday.
Last year Harley-Davidson was caught up in Donald Trump’s trade spats with China and Europe, which lost it money in additional tariffs.
