July 5, 2022

The Queens County Citizen

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Third Trimester | BRP offers fewer recreational vehicles, results are declining

Third Trimester |  BRP offers fewer recreational vehicles, results are declining

Supply chain interruptions affected BRP deliveries in the third quarter. The entertainment vehicle manufacturer has seen its profits and revenues decline.




Julian Arsenalt

Julian Arsenalt
Press

The Walcourt-based company reported Wednesday net income of $ 127.7 million, or $ 1.53 per share, down 36% from a year earlier. Revenue fell 4.8% to $ 1.59 billion for the three months ended October 31.

“Our third-quarter results reflect a previously expected decline in product deliveries as a result of supply chain disruptions,” BRP President and CEO Jose Boiszoli said in a statement.

Like many companies, manufacturers of Ski-Doo, Sea-Doo and Can-Am are struggling to obtain semiconductors, components that are part of the electronic chips needed to operate certain modules.

While the growing consumer interest in the COVID-19 pandemic has been in the rendezvous, it is slowing down its dealers’ ability to replenish stocks at historic lows.

Excluding non-performing items, BRP’s general earnings per share were $ 1.48 per share in the third quarter of last year, compared to $ 2.13 per share.

Quebec partially met the expectations of multinational analysts, with financial data firm Refinitiv forecasting $ 1.33 billion adjusted profit on revenue of $ 1.7 billion.

“Overall, we are satisfied with BRP’s performance in the third quarter,” analyst Benoit Poyer, Valeurs mobilieres Desjardins said in a note. The company has once again demonstrated its ability to deliver strong results despite persistent supply chain problems. ”

The recreational vehicle manufacturer expects to hover between its adjusted earnings of $ 9 and $ 9.75 per share per year. Its previous range was $ 8.25 to $ 9.75.

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