Harley-Davidson shares close to $10

Harley-Davidson Inc (NYSE:HOG) shares hit $10.07 today despite announcing plans to cut 1,100 jobs.  The company's Q4 profit fell 58% and investors are bailing.

Harley said they will cut 1,100 jobs over two years, close some facilities and consolidate others as it deals with a slowdown in motorcycle sales.

Going into the final hour of trading HOG shares are back at $11 and change.

HOG shares have gone from $48 to $10 in the last 12 months and thanks to the massive loss in market share, their dividend yield is now 11.19%.

The company sees shipments in 2009 of 264,000 to 273,000 new motorcycles, which is a drop of 10% to 13% from its 2008 levels.  It also expects the 2008 margins of about 34.5% to drop 3 to 4 points.

Harley's Q4 profit fell 58% to $77.8 million, or 34 cents per share, for the quarter ended Dec. 31, compared with $186.1 million, or 78 cents per share, in the same quarter last year.

Management reported worldwide retail sales fell 13.1% in the fourth quarter, with sales in the U.S. falling nearly 20%.

How safe is that dividend at this rate?  That is the big question.