Supply chain disruptions affected BRP deliveries in the third quarter. The recreational vehicle maker saw a drop in its earnings and revenue.
The Valcourt-based company on Wednesday reported net income of 127.7 million, or $1.53 per share, down about 36% from a year ago. In the three months ended October 31, revenue shrank 4.8% to $1.59 billion.
“Our results for the third quarter reflect the previously expected decline in product delivery caused by supply chain disruptions,” BRP President and CEO José Boisjoli said in a statement.
Like many companies, the manufacturer of Ski-Doo, Sea-Doo and Can-Am has difficulty sourcing semiconductors, components in electronic chips that are necessary to power certain units.
This slows its ability to replenish its dealers’ stocks, which are at historical lows, while consumer interest, which has increased since the start of the COVID-19 pandemic, remains on track.
Excluding non-recurring items, BRP’s regular earnings were $1.48 per share, compared to $2.13 per share in the third quarter of last year.
However, the Quebec multinational partly met the expectations of analysts, who had expected adjusted earnings per share of $1.33 on revenue of $1.7 billion, according to financial data firm Refinitiv.
“Overall, we are satisfied with BRP’s performance in the third quarter,” analyst Benoit Poirier, Valeurs mobilières Desjardins, said in a note. The company has once again demonstrated its ability to deliver solid results despite ongoing supply chain issues. ”
The recreational vehicle maker expects its adjusted earnings per share to be between $9 and $9.75 for the year. Its previous range was $8.25 to $9.75.
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