Harley cuts guidance; to slash output : US Business

CHICAGO (Reuters) - Harley-Davidson Inc warned on Thursday that it would report full-year earnings well below previous forecast, slash production of its iconic motorcycles and lay off hundreds of workers as the U.S. economic slowdown crimps demands for its pricey products.

"With growing weakness in the economy, U.S. retail sales of Harley-Davidson motorcycles were down 12.8 percent in the first quarter," Jim Ziemer, the company's chief executive, said in a statement.

The news came as Harley reported a first-quarter net profit of $187.6 million, or 79 cents a diluted share, compared with $192.3 million, or 74 cents a diluted share, last year.

Sales during the quarter rose 10 percent to $1.31 billion, the company said.

(Reporting by James B. Kelleher, editing by Mark Porter)

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