Reducing dealer bottlenecks; a bit of a drop in global sales expected.
September 14, 2015
by CANADIAN PRESS
MONTREAL — The maker of Ski-Doo snowmobiles is delivering inventory to dealers a couple of weeks earlier this season to ensure customers have their products well ahead of the first snowfall, in what could be a more challenging winter market.
Dealers wanted earlier deliveries to better accommodate their buyers who placed orders last spring, BRP chief executive Jose Boisjoli said
“We shipped earlier to help the dealer not to have the bottleneck in the shop,” Boisjoli said.
BRP expects global snowmobile sales will be down a little this coming season as ongoing challenges in Russia and a weak Alberta economy more than offset strength in the US and Western Europe.
Ski-Doo orders from Western Canadian dealers were significantly lower in the second quarter, contributing to a 20 to 25 per cent reduction in overall sales from the oil producing region in the second quarter.
The rest of Canada was “flattish” for a 10% reduction in Canadian sales, Boisjoli told analysts.
The Quebec-based company, formerly part of Bombardier Inc., said dealer inventories are 12% higher than at this time last year.
North American shipments from BRP will continue through October and November for orders placed last spring. Deliveries through January will fulfil later orders.
Although the global economy is uncertain, the company said the US market is solid and Europe performed better than expected despite weakness in Russia.
In Brazil, sales of lower priced products, including the Spark personal water craft, were hurt by a 35% devaluation of the currency which forced it to increase prices by 20 to 25%. But sales of higher priced products have held up.
“We see some slowdown on the entry-level product but continued retail on the high-end because rich people can afford product despite the real (currency’s) devaluation.”
Boisjoli said the Spark, the lower priced Sea-Doo, is doing well in North America and has traction in emerging markets.
© 2015 The Canadian Press