Davidson Shares Drop 11% on Sharp Miss in Motorcycle Shipments

Harley-Davidson Inc. shares recovered after executives forecast retail sales would be flat to slightly higher this year after a sharp, unexpected drop in fourth-quarter bike shipments sparked a rout in the stock.
Aggressive promotions to clear lingering inventory, new model launches and the introduction of a more affordable bike lineup should enable the Milwaukee-based manufacturer to sell 130,000 to 135,000 bikes this year, compared with 132,500 last year, executives saidBloomberg Terminal Tuesday.