BRP’s factories are working hard to catch up with production delays following last month’s cyberattack, which also resulted in the theft of trade secrets. But that doesn’t stop the company from raising its forecasts as consumers continue to buy its snowmobiles, personal watercraft and other recreational products.
Posted at 10:11 am.
Updated at 15:20.
During the presentation of its second-quarter results on Wednesday, senior managers at a Quebec multinational minimized the impact of six days of disruption at 11 factories. It is true that “a week or two” of production was lost. The catch-up will be extended through the fourth quarter of the fiscal year ending January 31 next year.
“We expect no impact on our forecasts as we recover some of the production lost over the weekend and overtime,” Chief Financial Officer Sebastian Martel said on a conference call with analysts. did.
The Valcourt multinational has not quantified the financial impact of this catch-up. Analysts, stunned by strong results, asked few questions about cyberattacks. BRP’s president and CEO, José Boisjoli, was unavailable for an interview and has not been able to speak with company representatives since the announcement of the cyberattack detected on August 8.
Few additional details were provided by MM. Boijoli and Martell. The investigation is still ongoing. The companies behind Ski-Doo, Sea-Doo and CanAm have filed claims with insurance companies.
Ransomware allowed hackers to steal about 30 gigabytes of data from the hidden web (dark web). La Presse was able to confirm that personal information and trade secrets of company executives had been stolen. The dealer has also been without a computer portal where she can order parts or schedule deliveries of her RVs to customers for weeks. Things are slowly returning to normal.
“We can order parts in about two weeks,” explains Luc Marchand, president of Claude St. Marie Sport in Montreal’s southern suburbs. Progressive. It’s the missing part that makes it difficult. There are still unsold personal watercraft. I haven’t received many snowmobiles. »
more money in the safe
Despite concerns about rising interest rates and a slowing economy, factors that could affect household spending on RVs, the BRP sees demand unabated for the foreseeable future.
Boisjoli said pre-orders for snowmobiles are at “very high” levels. He also observes supply chain improvements in the area of semiconductors, components found in electronic chips that are essential to the operation of certain modules.
Delivery times are getting shorter and raw material prices are dropping. This allows BRP to make more deliveries to dealers who are out of stock and unable to meet demand. Second-quarter retail sales in North America he plunged 16%. Boisjoli tempered the decline by revealing that this quarter’s growth is above his 20%.
“This does not reflect a decline in consumer demand, but rather limited product supply,” he said of record dealer sales in the second quarter.
In this context, BRP expects revenue growth for the fiscal year to fluctuate between 26-31%, compared with the previous range of 24-29%. His adjusted earnings per share are expected to be in the range of $11.30 to $11.65, compared with previous guidance of $11 to $11.35.
National Bank Financial’s Cameron Doerksen isn’t too worried about the impact of the recession on the BRP’s activity.
“We believe the company is well positioned to face a decline in demand,” analysts wrote in a note. We believe that current stock valuations already reflect the potential for a recession. »
On Wednesday afternoon, on the Bay Street floor, BRP shares rose $8.66, or 9.7%, to trade at $98.15.
- These are BRP employees around the world.