Sea-Doo maker raises financial outlook on strong Q2
CEO says consumer confidence strong
The head of BRP Inc. said he sees encouraging consumer trends, despite some speculation of an economic slowdown, as the company raised its financial outlook for 2020 following record secondquarter revenues and a profit boost of 128 per cent.
Jose Boisjoli, chief executive of the maker of Ski-Doo snowmobiles and Sea-Doo watercraft, pointed to “strong” U.S. consumer spending, low unemployment and a year-over-year uptick in housing starts.
“We’re not economists, but this is the thing that we believe is affecting our business. And so far we’re very happy with the state of the economy and the consumer,” Boisjoli told investors on a conference call Thursday. “Despite talk of an economic slowdown, our industry remains healthy, our dealer traffic is good and we continue to observe strong retail trends in August.”
Consumers may be showing resilience, but the overall economic picture is weakening. In the U.S., gross domestic product advanced at a moderate two per cent annual rate in the April-June quarter, down from a 3.1 per cent gain in the first quarter.
As it expands into the multibillion-dollar fishing and pleasure boating market, BRP has slightly increased its exposure to the trade war between the U.S. and China, where the material for some of the company’s boats originates.
Chief financial officer Sebastien Martel said the dent would be small, amounting at most to a $20-million hit over 12 months.