Company posts strong revenue, earnings, despite lagging Russian snowmobile sales
VALCOURT, Que—Ahead of what could be a rocky winter for BRP Inc., as unseasonable warmth lingers across much of North America, the snowmobile maker and powersports company has posted strong financials for the third quarter of 2015.
BRP announced revenue for Q3 of just over $1 billion, a 10 per cent increase compared to the third quarter of last year. The company also posted strong earnings of $141.5 million, a 5.5 per cent bump from the same quarter of 2014.
“Thanks to our geographic, manufacturing and product diversification and our solid execution, we delivered strong results for the third quarter,” the company’s president and CEO, José Boisjoli, said.
“While considering the volatile economic situation in many regions, I am pleased with how we have progressed so far this year,” Boisjoli added. “We have delivered on our plan and we continue to gain momentum with our network worldwide. I remain confident that we will reach our objectives for FY2016.”
Over the third quarter, the company found significant success in its year-round product lineup, which includes utility vehicles and all-terrain vehicles. BRP posted a 14.3 per cent revenue gain in the category, and pointed to a “favourable product mix” as the root cause. Among other quarterly highlights, the company launched its Can-Am Defender side-by-side vehicle, designed for the largest segment of the off-road vehicle market.
Bolstered by a favourable foreign exchange, the company also saw a rise in its sales of season products. Despite slumping snowmobile sales in Russia, which the company said resulted from the continuing economic slowdown in the country, the segment posted a 5.1 per cent revenue increase.
As the colder weather moves sluggishly into Canada and the Northern U.S., the company is no doubt hoping a white Christmas will allow it to continue its winning streak.