Jose Boisjoli happy despite an expected C$10m hit
Despite opposition from some elected officials on both sides of the boarder, the head of BRP says “logic will prevail”, and US Congress will ratify the revised North American Free Trade Agreement known as USMCA.
Jose Boisjoli, president and CEO of BRP, told the Ottawa Citizen that despite an expected C$10m hit expected next year from the need to increase domestic content on all-terrain vehicles made in the US, and an additional C$25m in steel and aluminium tariffs, he’s pleased with the new trade agreement.
“So far we are quite happy with the outcome because the impact for us will be minimal,” Boisjoli said. USMCA will be a lot less damaging than the company and many investors once feared.
Boisjoli’s comments came following his ringing of the opening bell on the Toronto Stock Exchange, where the maker of Ski-doo, Sea-Doo, Spyder motorcycles, Evinrude outboards and boats was celebrating 15 years since being spun off by Bombardier Inc, and five years as a publicly traded company.
BRP expects to reach its five-year earnings target one year early and Boisjoli said he sees no reason why strong growth can’t continue when the next five-year plan is unveiled next fall.
Ultimately, he said the company will likely add new products in the next decade and open manufacturing factories in Russia, Brazil and China.
BRP now has eight product lines that are sold by 4,500 dealers in 127 countries and 11 factories in five countries and about 10,000 employees.
BRP shares are up 80% since the company went public, but are down 36% since hitting an all-time high of $71.80 in September.