Saw this on Bloomberg.com

Harley Slashes Dividend by 70% to Boost Cash as Profit Slumps

By Alan Ohnsman

Feb. 12 (Bloomberg) -- Harley-Davidson Inc. slashed its quarterly dividend by 70 percent, the first cut since starting the payments in 1993, to boost cash as slumping sales sap profit.

The new dividend will be 10 cents a share, a cut from 33 cents, and will preserve about $50 million in cash this quarter, Milwaukee-based Harley said today in a statement. It will be payable March 19 to holders of record on March 5.

Harley’s move ended a string of increases it dated to its first dividend declaration in 1993. The biggest U.S. motorcycle maker said Jan. 23 that fourth-quarter earnings fell 58 percent, spurring plans to trim about 11 percent of its workforce and chop 2009 shipments of its namesake-brand bikes by 13 percent.

Harley’s debt rating was cut to A-, a drop of one grade from A, by Fitch Ratings, which said the move affects $3.2 billion of debt at Harley’s credit unit and $782 million at the parent company. Moody’s Investors Service on Feb. 3 lowered its rating on Harley-Davidson Financial Services to A2 from A1. The Fitch and Moody’s ratings are still investment quality.

Harley dropped $1.15, or 8.6 percent, to $12.26 at 12:53 p.m. in New York Stock Exchange composite trading.