Design Engineering

BRP Canadian sales get a boost despite struggle in Western Canada

By Ross Marowits   

General BRP

Eastern watercraft sales were up almost 20 per cent but were down "low single digits" out west.

MONTREAL — Bombardier Recreational Products has increased its earnings outlook for the year as Canadian sales surged nearly 10 per cent in the second quarter, despite continued weakness in Western Canada.

BRP motorcycles

Photo courtesy of BRP

The Quebec-based maker of Ski-Doos, personal watercraft and three-wheel Spyder vehicles says eastern and western regions of the country moved in opposite directions — with Eastern Canadian watercraft sales humming amid a warm summer and the west struggling due to economic weakness.

BRP said eastern watercraft sales were up almost 20 per cent but were down “low single digits” out west. All-terrain vehicle sales were down almost 10 per cent in the east but dropped 25 per cent out west.

“Western Canada is still difficult, but that being said I think it is stabilizing,” CEO Jose Boisjoli said Friday during a conference call.


Canada accounted for about 20 per cent of sales during the three months ended July 31.

Meanwhile, BRP, which was spun off from Bombardier Inc. in 2003, is trying to revive disappointing Spyder sales.

It has cut the price of its reconfigured Spyder F3 base model and is trying regional approaches in key markets in California and Florida to stimulate demand.

Spyder sales are down almost 20 per cent so far this year — far worse than the industry as a whole, but only slightly below the market for units priced above US$18,000.

BRP beat expectations by earning $1 million or one cent per share in adjusted profits in the second quarter on $856 million in revenues. Including a $43-million expense for a series of patent infringement lawsuits, its net loss increased slightly to $69 million.

Halfway through the year, the company expects strong year-round product sales will cause full-year adjusted earnings to increase three per cent to nine per cent, up one percentage point from its earlier forecast.


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