VALCOURT, Que. — BRP Inc., the maker of Ski-Doo snowmobiles, Sea-Doo personal watercraft and Can-Am wheeled vehicles, says its third quarter revenue got a boost. They believe this is due to a stronger U.S. dollar and European euro. However, BRP added that Russias weaker ruble has been a drag.
BRP Inc. says its revenue for the three months ended Oct. 31 increased to $918 million, up six per cent or $52 million from the same time last year but less than analyst estimates.
Currency fluctuations accounted for $29 million of the increase, while the rest was mostly from higher snowmobile sales and related parts, accessories and clothing.
The former Bombardier recreational products division had $37.2 million of net income and $71.9 million of normalized net income in the companys fiscal third quarter, also below analyst estimates.
The normalized profit amounted to 60 cents per share, up from 50 cents a year earlier, mostly because of the higher volume of snowmobiles sold. BRPs net income was down 22 per cent from $48.2 million in last years third quarter.
Analysts had estimated 65 cents per share of normalized earnings and $952 million of revenue for the quarter.
BRP also says that the weakness of Russias currencys currency will reduce its full-year revenue growth and normalized earnings per share.
Earlier this year, we identified a currency risk in Russia and the situation has deteriorated significantly with a steep decline in the value of the ruble since the end of October, said Jose Boisjoli, BRPs president and CEO.
With six weeks remaining before the end of the fiscal year, we are adjusting our guidance to reflect the potential financial impact. I am nevertheless pleased with our results because the other main drivers of our earlier guidance are largely unchanged and this speaks volumes about the quality of our execution.
Its now estimating normalized net income will be up between four and 11 per cent — down from between 10 and 17 per cent — while the revenue range has been lowered by two percentage points to between 10 and 14 per cent growth.
