Quebec-based manufacturer of recreational vehicles BRP Inc. reported record revenue for the fifth year in a row, boosted by strong retail demand for its Can-Am side-by-side vehicles. For the full year, profit not counting special items rose 21% to US$ 198.8 million or $2.38 a share. Revenue rose 8% to US$ 3.47 billion.
According to the Bombardier subsidiary, its retail momentum is outpacing rivals not only in North America, where it had an 11% sales increase, but everywhere. BRP also introduced stronger-than-expected earnings guidance for the next fiscal year.
Chief executive Jose Boisjoli said the company plans to drive sales by introducing products such as the Maverick X3 "mud monster" off-road vehicle and a Spyder three-wheeler priced at US$ 10,000 while boosting lower-cost production in Mexico.
The official added that international markets such as Mexico and Scandinavia are going strong while Brazil and Russia are recovering. "That's why we're quite happy with our position."
A plan to introduce a side-by-side model every six months until 2020 has helped BRP appeal to a broader share of buyers. BRP makes five separate models of side-by-sides, a kind of off-road, four-wheel drive vehicle, which allow drivers to sit beside their passengers instead of in front of them.
The company plans to increase output of side-by-side vehicles at its Juarez 2 manufacturing plant in Ciudad Juarez, Chihuahua by 30% this fiscal year over the previous year's levels. It also plans to hike production of engines for those vehicles at a separate plant in Queretaro.
The moves will underpin a projected growth in earnings per share of 20 to 25% for fiscal 2019 versus 2018, the company said. Revenue should grow 5 to 8% over the same period, it said.