BRP Revenues, Engine Sales Down
April 26, 2005
Filed under Uncategorized
Bombardier Recreational Products Inc., a privately-held company branded as “BRP,” says consolidated revenues for its fourth quarter ended January 31, 2005, were C$634.3 million, a decrease of C$91.9 million compared to consolidated revenues of C$726.2 million for the combined three-month period ended January 31, 2004.
BRP operates in two segments: the Power Sports segment designs, develops, manufactures and sells snowmobiles, watercraft, ATVs, sport boats and Rotax engines; the Marine Engines segment designs, develops, manufactures and sells outboard engines.
BRP says fourth quarter results stem from a lower number of units sold and the unfavorable impact of the strengthening of the Canadian dollar. The decreased number of units sold is primarily due to a management decision to postpone production and deliveries of watercraft from the fourth quarter of fiscal 2005 to the first quarter of fiscal 2006 to better align shipments with the retail business cycle, and due to lower sales of engines to motorcycle manufacturers, the company said.
BRP’s consolidated gross profit for the three-month period ended Jan. 31 was C$105.4 million, up from C$85.9 million in last year’s fourth quarter.
Power Sports segment revenues for the fourth quarter were C$530.8 million compared to C$612.2 million for the prior year period. BRP says the decrease was primarily caused by a reduction in watercraft deliveries, the strengthening of the Canadian dollar, and from lower sales of engines to motorcycle manufacturers.
For the year ended January 31, 2005, consolidated revenues were C$2.467 billion, up 2.4% compared to C$2.409 billion reported for prior year. Consolidated gross profit for the year ended Jan. 31 was C$422.1 million, down from C$423.6 million.
Power Sports segment revenues were C$1.951 billion for the year, up 3.3% from C$1.888 billion last year.
“FY04/05 was a transition year. When you look at the structural changes we implemented, the cost reduction plan we introduced, and the adverse conditions we dealt with, such as the strengthening of the Canadian dollar and the increased in costs of raw materials, I am satisfied with the results our team achieved,” said Jose Boisjoli, BRP’s president and CEO.