Photo: Graham Hughes The canadian Press
For the president and chief executive officer of the company, based in Valcourt, José Boisjoli, travel restrictions as well as measures of detachment, physical stimulate the demand for products such as Ski-Doo, Sea-Doo and Can-Am.
By opting for a vacation home because of the pandemic, a growing number of consumers seem interested in the recreational vehicles, estimated to BRP, who wonders how long this trend will last in the current economic context.
For the president and chief executive officer of the company, based in Valcourt, José Boisjoli, travel restrictions as well as measures of detachment, physical stimulate the demand for products such as Ski-Doo, Sea-Doo and Can-Am. “Since the beginning of the month of may, the sales made by our dealers) are up 35 %. We are convinced that this phenomenon plays in our favor. “
The dashboard on the evolution of the coronavirus in Quebec, in Canada and in the world
The pandemic has also affected the financial performance of BRP, which has posted a net loss of 226,1 million in the first quarter. The company also expects that its sales — its sales are made to dealers, declines of the order of 40% by the end of July and between 10 % and 20 % during the second half of the year. With an unemployment rate oscillating around 13 % in Canada, which is close to 15 % in the United States, as well as a consumer confidence fragile, Mr. Boisjoli has recognized that the situation could quickly change over the next few months.
It is the increased sales of recreational vehicles for the company since the beginning of the month of may.
Per share, the net loss of BRP amounted to 2.58 $ in the first quarter, we recorded an impairment charge 171.4 million at the location of the marine division. Excluding non-recurring items, the company saw its normalized earnings to be $ 22.7 million, or 26 cents per share, compared to 52.7 million, or 54 cents per share in the first quarter of last year. Revenue declined 7.5 %, to $ 1.23 billion.
The company has to tighten its belt and wants to save up to $ 450 million this year. In addition to having already implemented a hiring freeze and 250 layoffs, the company has decided to put an end to the production of Evinrude outboard engines, which will result in the elimination of 650 positions, primarily in the United States.
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