BRP Reports Earnings Drop
December 16, 2005
Filed under Uncategorized
Bombardier Recreational Products (BRP), Valcourt, Quebec, reported a sharp decline in net income for the third quarter ended Oct. 31, 2005, but posted improved operating income for its Powersports operations.
BRP reported net income for the quarter of $42.3 million (C$48.9 million), down from $62.4 million (C$72.1 million) reported in the same period last year. Revenue for the quarter was $540.5 million (C$624.6 million), down from $546.1 million (C$631.2 million) in the third quarter of 2004.
BRP has two operating segments: Powersports and Marine engines, but does not break out earnings by segment. However, operating income for Powersports in the third quarter climbed from $36.9 million (C$42.6 million) in the third quarter last year to $50.5 million (C$58.4 million) this year. Revenues for the segment were $427.9 million (C$494.4 million), down from $439.1 million (C$507.4 million) in the third quarter of 2004.
“I’m satisfied with our progress,” said Jose Boisjoli, BRP president and CEO in a prepared statement, “because gross profit margins and income from operations have increased in both segments.” The improvements, he said, were the result of cost reductions and changes in product offerings in both segments.