BRP Reverses Loss

May 2006 News

BRP, a Canadian company, is reporting a higher revenue and income for the fourth quarter of fiscal 2006. For the year income increased, while revenue decreased. 


Revenues for the quarter were $599.9 million, compared with $552.8 million for the same period last year. All figures are in U.S. dollars.


The company's power sports segment generated higher revenue, but that was offset by lower revenue in the marine engines segment.


Revenue for the full year fell to $2.09 billion, compared with $2.1 billion for the same period in 2005. The overall decrease is because of lower revenues in both segments.


Profits for the three-month period ending Jan. 31, 2006, was $14.4 million, compared to a net loss of $21.3 million for the same period a year ago.


"I am pleased with our progress. We are becoming more and more profitable because of a better product mix and our sustained effort to reduce our costs," Jose Boisjoli, president and CEO of Quebec-based BRP, said in a statement.


Profits for the year were $54.8 million, compared with $25.3 million last year.


"Our determination to maintain our leadership position in our traditional markets, our capability to undertake a major turnaround in the profitability of our marine engines segment as well as the introduction of market-shaping products, such as the Outlander 800 and the Evinrude E TEC family of engines, will continue to have a positive impact on our financial results," he said of the privately held company.


Power Sports segment revenues totaled $516.5 million for the quarter, compared to $461.8 million for the same period last year. For the year, however, revenues fell to $1.67 billion compared with $1.72 billion last year.


Marine Engines segment revenues decreased to $97.5 million for the quarter, compared with $105 million for the year-ago period. For the year, revenues also dropped to $481 million from $499.7 million last year.


"We expect to continue to experience external pressures such as high commodity prices and a strong Canadian dollar while we pursue the implementation of our cost-reduction program and keep on developing and marketing exciting, innovative products for our customers," Boisjoli said in a statement.

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