STURTEVANT, Wis. - Bombardier Recreational Products released its fourth quarter and financial year-end results this morning, two days after the company said it would discontinue its 6, 8, 25, 30, 40 and 50-hp carbureted 2-stroke engines for model year 2006.
In the April 20 edition of BRP's “The Real Deal” newsletter, the company's executive vice president, Roch Lambert, wrote that the production of those engines would stop at the end of April 2005, and that orders would be filled until stocks are depleted. The move came as part of the company's ongoing effort to transition its product offering to cleaner technologies, according to Lambert.
“We will announce the complete 2006 model year line-up next week,” he wrote.
In the release today, BRP said the revenues from its marine engines segment fell from C$126.0 million during the fourth quarter last year, to C$117.9 million for the 4Q 2005 period, ended Jan. 31.
BRP blamed the decrease in revenues on a reduction in units sold and the unfavorable impact of the weak U.S. dollar.
However, for the fiscal year ended Jan. 31, revenues for the marine engines segment were relatively stable. Revenues for the year were C$561.1 million, up from the C$559.8 million for the combined year ended Jan. 31, 2004.
BRP said increased deliveries in the international market were offset by a reduction in deliveries in the North American market mainly due to the impact of import duties, subsequently removed, on Japanese-manufactured engines sold in the U.S.
Overall results for BRP for the fourth quarter ended Jan. 31, decreased C$91.9 million, from C$726.2 million during the same period in 2004, to C$634.3 million in 4Q 2005.
The company said revenues increased by C$58 million from C$2,409 million in FY04 to C$2,467 million in FY05 despite the unfavorable impact of the strengthening Canadian dollar by an amount of C$152 million.
"FY04/05 was a transition year,” said Jose Boisjoli, BRP's president and CEO. “When you look at the structural changes we implemented, the cost reduction plan we introduced, and the adverse conditions we dealt with, such as the strengthening of the Canadian dollar and the increased in costs of raw materials, I am satisfied with the results our team achieved."
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