Harley-Davidson has announced its first quarter results.

Harley-Davidson has announced plans to reduce production and cut over 700 jobs as part of its first quarter results ending March 2008.

The company also reported a 2.5% decrease in profits – down from US$192.3 million to $187.6m (around £94m) compared to the first quarter of 2007. It also reported a decrease in US sales – down 12.8% – although the company’s retail results overall outperformed the industry sector, which reported sales down 14%.

Harley-Davidson cited the growing weakness in the economy and US retail trends as among the reasons for the planned reduction in production of up to 27,000 motorcycle units, and for the planned cuts in staff numbers of around 730.

However, the company has stated that it is optimistic about its long-term prospects and that it believed its actions would ‘better position the company for a challenging business environment’. Jim Ziemer, CEO of Harley-Davidson, explained: “Harley-Davidson is fortunate to be dealing with the current economic environment from a position of financial strength. We are great company with an exceptionally powerful brand.”

The company anticipates that it will ship up to 80,000 Harley-Davison motorcycles in the second quarter of 2008.