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Snowmobile-maker BRP posts loss, maintains full-year profit outlook

A file photo shows snowmobilers on a trail.


Snowmobile-maker BRP Inc. posted a second-quarter loss but says it's within its expectations and that the company is on track to meet its profit outlook for the year.

Valcourt, Que.-based BRP said Thursday it booked a net loss of $7.9-million, or seven cents per share, in the latest quarter, up from a loss of $2.9-million in the year-earlier period.

Second-quarter revenue was up 2.1 per cent, or $12.8-million, to $620.9-million.

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Revenue rose by 6.5 per cent or $37.8-million when the impact of the exit from the sport-boat business in the fall of 2012 is excluded.

"Our second quarter results were right in line with our expectations and we are on track to achieve our guidance for the year. I'm particularly pleased with the 16 per cent growth in retail sales of our products in North America during the quarter," president and chief executive officer José Boisjoli said in a news release.

"Our 14 per cent growth in international markets (excluding sport boat) is a strong testament to our product momentum, and this despite the fact that our second quarter is traditionally our weakest quarter of the year."

The company confirmed its full-year guidance for earnings per share of $1.45-to-$1.50, on a normalized basis.

Normalized net EPS is a non-International Financial Reporting Standards measure the company uses to assess its operating performance.

Sales from seasonal products in the second quarter decreased by $15.5-million or 9.9 per cent, to $140.6-million, largely because of the reduction in revenue of $25-million as a result of the sport-boat exit, the company said.

Excluding that item, revenue was up 7.2 per cent or $9.5-million on higher volume of seasonal products sold, partially offset by additional sales programs to support retail sales in North America due a late spring and unfavourable weather, said BRP.

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Revenue from year-round products was up by $20.9-million or 8.1 per cent to $278.1-million in the second quarter. The increase is mostly due to higher global sales of ATVs and side-by-side vehicles, partially offset by additional sales programs, said the company.

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About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More


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