brp sales rise in fourth quarter

Bombardier Recreational Products Inc., parent company of Ski-Doo snowmobiles, reported strong fourth quarter sales and earnings as its Powersports division's sales increased $82 million (CA).

The Valcourt, Quebec-based maker of snowmobiles, ATVs, watercraft, sport boats and outboard motors, said it also posted yearly earnings gains, but saw sales dip slightly overall.

For the fourth quarter, which ended Jan. 31, BRP sales increased 8.5% to $675.3 million (CA) from $622.4 million a year earlier. The company said Powersports unit sales were $580.4 million vs. $518.9 million a year earlier. However, BRP says an unfavorable exchange rate hurt sales in the segment by $19 million.

The Powersports unit includes snowmobiles, ATVs, watercraft, sport boats and Rotax engines. However, the company does not break down sales by vehicle segment.

At the same time BRP said its Marine Engines division's sales dipped to $109.5 million in the quarter, from $117.9 million.

Overall, the company said annual sales for fiscal 2006 decreased 3.6% from $2.45 billion for the previous year to $2.36 billion this year. The decline was due to Powersports and Marine sales falling $90.1 million, much attributed to BRP's decision to realign production and delivery of its watercraft lineup from the fourth quarter and pushing it to the first quarter of the next fiscal year.

But while sales dipped, profits increased from $28.5 million last year to $61.6 million this year.

"I am pleased with our progress. We are becoming more and more profitable because of better product mix and our sustained efforts to reduce our costs," said Jose Boisjoli, BRP's president and CEO.

For the year, BRP says it saw a more favorable product mix in its ATV (new Outlander 800 H.O.) and watercraft lineups, meaning it sold more of its most profitable units.

No mention was made in the firm's earnings report about snowmobile sales although industry sources say Ski-Doo remains the top-selling brand.