Amid Tariffs, Universal Eyes Factory Shift From China; GoPro Could Do Same—but Not Yet Needed
Strategies for reducing exposure to U.S. tariffs on Chinese imports (see 1808030028) were discussed on Universal Electronics and GoPro Q2 earnings calls Thursday. Universal is developing plans to "mitigate" such costs by "gradually" shifting production of its "highest-priority or highest-volume"…
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goods "out of China and into existing facilities that we have in Mexico or Brazil,” said CEO Paul Arling. The “vast majority” of Universal’s remote controls are manufactured in its Chinese factories, Arling testified against the tariffs at a July 24 Office of U.S. Trade Representative hearing. Shifting production “will take months to complete, which means that we may incur additional costs during the transition as we expect some of these additional tariffs to be implemented somewhere in late September or probably into October,” said Arling now. GoPro has escaped the tariffs, said CEO Nicholas Woodman. If that changes, Woodman thinks GoPro would be able to shift production easily to “two locations” without tariff exposure. Friday, GoPro closed up 18 percent at $7.05 and Universal gained 26 percent to end the day at $44.95.