BRP today reported sales of C$42.1m for its fourth quarter ended January 31, 2018, down 3.2% compared to a year ago. Net income declined to C$115.1m compared to C$136.4m a year ago. The company said that the drop came from lower wholesale sales in its Seasonal Products division and an unfavorable foreign exchange rate of C$14m.
For the full year, revenues rose 7.6% to C$4.49bn thanks to higher sales in the Year-round Products and Seasonal Products divisions. Net income for the year was up to C$274.5m, compared to US$257.0m a year ago.
Its Seasonal Products division, which includes Sea-Doo watercraft, was down 9.4% to C$443.3m for the quarter, because of a lower volume of snowmobiles sold. That was partially offset by a higher volume of PWC sold.
Sales in Propulsion Systems, which includes Evinrude outboards and Rotax engines, declined by 19.1% to C$90.2m for the quarter. The decrease came from a lower number of outboard and motorcycle engines sold.
“Model year 2018 products, including new Can-Am side-by-side platforms and a cutting-edge Sea-Doo platform, were well-received by consumers,” said Jose Boisjoli, president and CEO, in a statement.
The company said it plans to ramp up production for its Seasonal and Year-Round products at facilities in Mexico. “I am confident that we are well-positioned to deliver our fiscal year 2019 guidance that calls for 5% to 8% revenue growth as well as 20% to 25% normalized EPS growth,” said Boisjoli.
BRP expects sales of its Seasonal Products to grow 2% to 5%, while sales in Propulsion Systems will drop 4% to 8%.