Ski-Doo maker BRP books near 300% profit jump, boosts estimate for tariff hit up to $70M this year
"We are planning for demand to remain tough until economic conditions improve"
Jeff Lagerquist
Guests of BRP's Club Ski-Doo check out the long-awaited 2020 Ski-Doo Summit X Monday Feb. 18, 2019 in Grapevine, Texas. THE CANADIAN PRESS/AP-Brandon Wade/AP Images for BRP · Associated Press
Ski-Doo and Sea-Doo maker BRP (DOO.TO)(DOO) shares rose to their highest level since March as the company reported a nearly 300 per cent year-over-year jump in profit.
However, the Canadian powersports manufacturer also increased its estimated hit from U.S. tariffs to between $60 million and $70 million this fiscal year, while warning about challenging demand from consumers.
Valcourt, Que.-based BRP reported that first-quarter profit hit $161 million, up from $42.5 million the prior year. Sales for the three months ended April 30 rose slightly on an annualized basis to $1.8 billion.
“The operating environment remains challenging, with significant macroeconomic uncertainty and a volatile tariff situation affecting consumer confidence,” chief executive officer José Boisjoli told analysts on a post-earnings conference call. BRP on Thursday morning announced Boisjoli will retire at the end of the year.
“As uncertainty is expected to continue affecting consumer confidence, we are planning for demand to remain tough until economic conditions improve,” he added.
BRP manufactures products in Canada and Mexico. The company says all of its vehicles are compliant with the United States-Mexico-Canada Agreement, and are thus exempt from the bulk of American tariffs.
“However, we have seen incremental tariffs stemming from the U.S. tariff rate increase on China, the new tariffs on other countries; these are primarily impacting our [parts and accessories] business and some of our U.S. suppliers, which in turn is impacting us,” Boisjoli said.
“We now estimate that the total gross tariff impact to our business for fiscal 2026 to be between $60 million and $70 million,” he added. “We expect this impact to be manageable, as we should be able to offset most of the incremental cost using different levers across our value chain.”
In March, Boisjoli estimated a $40 million impact from tariffs throughout the year.
Toronto-listed shares closed 12.68 per cent higher on Thursday at $56.00.
ca.finance.yahoo.com
"We are planning for demand to remain tough until economic conditions improve"
Jeff Lagerquist
Guests of BRP's Club Ski-Doo check out the long-awaited 2020 Ski-Doo Summit X Monday Feb. 18, 2019 in Grapevine, Texas. THE CANADIAN PRESS/AP-Brandon Wade/AP Images for BRP · Associated Press
Ski-Doo and Sea-Doo maker BRP (DOO.TO)(DOO) shares rose to their highest level since March as the company reported a nearly 300 per cent year-over-year jump in profit.
However, the Canadian powersports manufacturer also increased its estimated hit from U.S. tariffs to between $60 million and $70 million this fiscal year, while warning about challenging demand from consumers.
Valcourt, Que.-based BRP reported that first-quarter profit hit $161 million, up from $42.5 million the prior year. Sales for the three months ended April 30 rose slightly on an annualized basis to $1.8 billion.
“The operating environment remains challenging, with significant macroeconomic uncertainty and a volatile tariff situation affecting consumer confidence,” chief executive officer José Boisjoli told analysts on a post-earnings conference call. BRP on Thursday morning announced Boisjoli will retire at the end of the year.
“As uncertainty is expected to continue affecting consumer confidence, we are planning for demand to remain tough until economic conditions improve,” he added.
BRP manufactures products in Canada and Mexico. The company says all of its vehicles are compliant with the United States-Mexico-Canada Agreement, and are thus exempt from the bulk of American tariffs.
“However, we have seen incremental tariffs stemming from the U.S. tariff rate increase on China, the new tariffs on other countries; these are primarily impacting our [parts and accessories] business and some of our U.S. suppliers, which in turn is impacting us,” Boisjoli said.
“We now estimate that the total gross tariff impact to our business for fiscal 2026 to be between $60 million and $70 million,” he added. “We expect this impact to be manageable, as we should be able to offset most of the incremental cost using different levers across our value chain.”
In March, Boisjoli estimated a $40 million impact from tariffs throughout the year.
Toronto-listed shares closed 12.68 per cent higher on Thursday at $56.00.
Ski-Doo maker BRP books near 300% profit jump, boosts estimate for tariff hit up to $70M this year
The Valcourt, Que.-based company reported first-quarter profit hit $161 million, up from $42.5 million the prior year.
ca.finance.yahoo.com
