BRP today reported sales of C$956.2m for its first quarter ended April 30, 2017, up 3% over last year. It reported a net loss of C$18.5m, mainly due to an “unfavourable foreign exchange rate impact” on its long-term US debt.
"Even though the Sea-Doo season is only just starting, we can see a good momentum in the watercraft business,” said José Boisjoli, president and CEO, in a statement. “Our Parts, Accessories and Clothing business has also performed very well this quarter, due to good end-of-season snowmobile parts sales and to strong interest in our new SSV accessories."
The BRP board approved a quarterly dividend and launch of an issuer bid. “These decisions reflect our solid financial position, strong ongoing cash flow generation ability and confidence in BRP's fundamental value,” said Boisjoli.
Sales of Seasonal Products, which includes Sea-Doo watercraft, were up 6.9% to US$19.7m for the quarter. The gains were largely due to a higher volume and favourable mix of personal watercraft.
Its Propulsion systems, which includes Evinrude outboards and Rotax engines, decreased by C$5.5m or 5.0% to C$105.6m for the quarter. The decrease was largely due to a fewer number of aircraft engines sold.
BRP increased its year-end guidance to an expected increase of 4% to 8% in overall sales, with normalised net income gains from 10% to 16%.