Texas recreational vehicle dealers faced the wrath of Harvey: BRP

Hurricane Harvey has shuttered several BRP dealers that were in the path of the storm and will likely affect sales for months to come, the recreational vehicle company (TSX:DOO) said Friday.

Thirteen Texas dealers selling mainly off-road vehicles and watercraft have been closed since the storm hit last week, with six likely suffering severe damage, says chief executive Jose Boisjoli.

As was the case following last year’s fires in northern Alberta, the sales impact could be lengthy.

“It will be a hit definitely,” he said in an interview after the company released strong second-quarter results helped by a recovery in Alberta.

“Life needs to go back to a more normal situation before people (purchase) those types of products.”

The damaged stores represent a fraction of BRP’s 900 offroad vehicle dealers in the U.S.

While these type of storms are very sad, Boisjoli said there are catastrophic events each year somewhere in the world that affect its dealers.

Stores typically remove products in advance to avoid damage.

Although it isn’t directly on the hook for any rebuilding expenses, Boisjoli said BRP would help by moving products from stores facing long closures to other dealers so the inventory doesn’t become obsolete.

Other Canadian companies with assets in the Gulf Coast area joined their American counterparts in closing offices and hunkering down to wait out the storm.

Precision Drilling (TSX:PD) and Calgary-based pipeline company Enbridge (TSX:ENB) have closed offices in Houston, while Enbridge has removed all but essential staff from its natural gas gathering and processing facilities in the

Gulf of Mexico.

BRP said its revenue surged 20 per cent to $1.03 billion during the three-months ended July 31, propelling it to a $100-million profit.