- Reuters / Mike Segar
- GoPro says it will move the production of most of its US-bound cameras out of China by next summer.
- The action-camera maker says it hopes to “mitigate the potential impact of inclusion on any new tariff lists.”
- GoPro in January announced a restructing plan with the hope of returning to profitability by the end of the year.
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GoPro is moving the production of most of its US-bound cameras out of China by next summer in order to “mitigate the potential impact of inclusion on any new tariff lists” drawn up by the Trump administration.
“Today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our US-bound camera production out of China,” said Brian McGee, executive vice president and CFO of GoPro, in a press release. “We believe this diversified approach to production can benefit our business regardless of tariff implications.”
On GoPro’s third-quarter earnings call in November, McGee warned this move could be coming.
“On the tariff, other companies have successfully sought exclusion on the tariffs and we believe there are reasons for our cameras to also be excluded, if we are ever included in a tariff left in the future,” McGee said.
“But we’re being very proactive on this topic. We also believe we have an option to move our U.S.-bound production out of China in the first half of 2019 if necessary.”
It has been a difficult year for GoPro investors, who have seen shares lose more than a third of their value after the company announced a restructuring plan in January. At the time, GoPro said it would lay off 250 workers and exit the drone business in an attempt to return to profitability by the end of the year. It also hired JPMorgan to look into a possible sale.
Wall Street analysts expect that company will meet its restructuring objective when it reports its fourth-quarter results at the end of January. GoPro is expected to post adjusted earnings of $0.26 a share on revenue of $374.25 million for its crucial holiday quarter, according to analysts surveyed by Bloomberg.
- Markets Insider