BRP revenue up, cites health of ATV, SxS sales

Publish Date: 
Sep 13, 2013

Operating expenses decreased by $28 million, or 20.8 percent, to $106.8 million. During the three-month period ended July 31, the company recorded a gain of $11 million from an insurance recovery whereas during the three-month period ended July 31, 2012, restructuring costs of $9.7 million and an impairment charge of $7.6 million were recorded in connection respectively with the transfer of PWC manufacturing in Mexico and the closure of the sport boat business.

The foreign exchange impact represented an increase of operating expenses of $3 million.

Overall, operating expenses before unusual and non-recurring items remained stable between the three-month periods ended July 31, 2013 and July 31, 2012.

Normalized net income decreased by $10.6 million to $7.6 million for the three-month period ended July 31, compared with $18.2 million for the corresponding period last year. The decrease is primarily due to increased sales program costs, additional expenses in connection with the transfer of PWC production to Mexico and increased interest costs from a higher amount of long-term debt outstanding.

Revenue for the three-month period ended July 31 were $620.9 million, an increase of 2.1 percent or $12.8 million compared to the same period of last year. Revenues increased by 6.5 percent or $37.8 million when excluding the impact of the exit of the sport boat business. The increase in revenues includes a favorable foreign exchange rate variation of $11 million, mainly related to the strengthening of the Euro against the Canadian dollar.

Revenue for the six-month period ended July 31 were $1,425.2 million, an increase of 4 percent or $54.4 million compared to the same period of last year, BRP reported. Revenues increased by 9.5 percent or $123.4 million when excluding the impact of the exit of the sport boat business.

The increase in revenues includes a favorable foreign exchange rate variation of $24 million, mainly related to the strengthening of the US dollar and Euro against the Canadian dollar.

Posted by Holly Wagner


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