BRP on track despite lower revenue, bigger net loss in Q2
Recreational vehicle company set to unveil 2014 Can Am and Sea-Doo models.
MONTREAL — BRP Inc., the former recreational products division of Bombardier Inc., says it remains on track to meet the company’s full-year guidance despite a bigger loss in its seasonally slow second-quarter and revenue that missed analyst forecasts.
The Quebec-based maker of Ski-Doo snowmobiles, Sea-Doo personal watercraft and Can-Am wheeled vehicles said its net loss surged to $7.9 million for the period ended July 31, compared with a loss of $2.9 million a year earlier.
The change was largely due to the impact of a larger foreign exchange loss related to BRP’s long-term debt.
Adjusting for one-time items, its adjusted profit was $7.6 million, down from $18.2 million in the second quarter of 2012.
The company recorded a gain of $11 million in the quarter from an insurance recovery, compared with $9.7 million in restructuring costs last year from transferring manufacturing to Mexico, and taking a $7.6-million charge from closing its sport boat business.
Revenues in the quarter increased 2% to $620.9 million, including the positive impact of a stronger euro. Revenues were up 6.5% or $37.8 million when excluding the impact of BRP’s decision to exit of the sport boat business last fall.
BRP’s revenues benefited from a 16% growth in North American sales and an improved reach overseas.
“Our second quarter results were right in line with our expectations and we are on track to achieve our guidance for the year,” said president and CEO Jose Boisjoli.
“Our 14% growth in international markets (excluding sport boat) is a strong testament to our product momentum.”
The company plans to unveil its new Sea-Doo and Can-Am models for the 2014 season next week at its semi-annual dealer meeting in Florida.
© 2013 The Canadian Press