BRP, which operates three plants in Mexico, reports strong fourth quarter profits
Bombardier’s Recreational Products division BRP reported a stronger-than-expected fourth quarter which ended on January 31, 2017.
The company obtained a US$ 102.07 million profit or US$ 0.91 per share compared with a loss of US$ 21.45 million or US$ 0.19 per diluted share during the same three-month period last year. Revenue for the quarter was up 17.7% to US$ 980 million.
Normalized net income for the quarter was US$ 83.54 million, or US$ 0.75 per diluted share.
The Quebec-based company says it could move production from Mexico if NAFTA changes result in hefty border taxes, but BRP chief executive Jose Boisjoli is hoping “common sense” will prevail during upcoming negotiations.
“We don’t want to do it,” he said in an interview about moving assembly work. “(But) if the tariff is very high we could.”
Boisjoli said the company has reviewed its options and will be ready to act swiftly as it has in the past to market fluctuations and geopolitical realities.
Out of its global workforce of 8,700, BRP employs 3,600 at three facilities in Mexico, two of them are located in Ciudad Juarez which built all-terrain vehicles and a Queretaro facility that manufactures Ski-Doos.
(US$ 1 = 1.34 Canadian dollars)