BRP reports $226M Q1 loss, warns Q2 sales expected to plunge due to pandemic

VALCOURT, Que. — BRP Inc. reported a first-quarter loss of $226.1 million and warned it expected revenue in its second quarter to drop sharply compared with a year ago due to the pandemic.

The Ski-Doo and Sea-Doo maker says it expects revenue in the second quarter to be down about 40 per cent compared with last year.

BRP lost $2.58 per diluted share for the quarter ended April 30 as it took a $171.4-million impairment charge related to its marine business compared with a profit of $23.8 million or 25 cents per diluted share a year ago.

Revenue in the quarter fell to $1.23 billion compared with $1.33 billion.

Excluding the impairment charge and other items, BRP says its normalized earnings for the quarter amounted to a profit of $22.7 million or 26 cents per diluted share compared with a normalized profit of $52.7 million or 54 cents per diluted share a year ago.

The results came a day after BRP said it would cut 650 jobs or about five per cent of its global workforce as it stopped producing outboard motors.

This report by The Canadian Press was first published May 28, 2020.

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The Canadian Press