Trump Tariffs Prompt Yachtmaker To Eschew Profit Forecast

By Francois de Beaupuy

Mar 20, 2025 (Bloomberg) –Beneteau SA, a French maker of sailing yachts and powerboats that generates about 20% of its sales in the US, isn’t providing an annual profit forecast because of uncertainty over Trump administration trade policies.

It opted not to give earnings guidance notably because of “what will happen in terms of trade risks, and talks that may go one way one day and the other way the next day,” Chief Executive Officer Bruno Thivoyon said on a conference call Thursday. 

The shares fell as much as 10% in early Paris trading on Friday, and have declined about 30% in the past 12 months.

Trade tensions are escalating between the US and European Union after US President Donald Trump slapped 25% tariffs on steel and aluminum imports — prompting the EU to announce levies targeting as much as €26 billion of US products. Trump further threatened a 200% tariff on wine, champagne and other alcoholic beverages from the EU unless Brussels removes its announced tariffs, most of them expected to enter into force in mid-April.

“If Trump slaps very significant tariffs on small motorboats that we currently manufacture in Europe, our US industrial footprint” may eventually help the company adjust to potential changes, Thivoyon said.

Beneteau, based in a seaside town in western France, reported a 60% drop in operating income in 2024 as higher interest rates prompted boat dealers to reduce inventories. It expects a further decline in revenue this year, but said sales are likely to pick up in the second half as stockpiles stabilize and it rolls out new models. 

Beneteau proposed a dividend of €1.43 ($1.55) per share. It includes a special interim dividend of €1.21 a share resulting from the sale of its housing division, which will be paid March 27. 

© 2025 Bloomberg L.P.

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