UPDATE 2-Ski Doo maker BRP warns of Russia sanctions hurting results

Fri Sep 12, 2014 1:01pm EDT
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(Adds details on guidance, conference call and analyst comments)

By Tanvi Mehta

Sept 12 (Reuters) - BRP Inc, the maker of Ski-Doo snowmobiles and Sea-Doo watercrafts, warned that results for the rest of the year could be hurt by sanctions on Russia and a softer economy in South America.

Shares of the Quebec-based company, which in March had said uncertainty in Russia would hurt demand, fell as much as 4 percent on Friday.

"Russia is a special situation, very difficult to explain," CEO Jose Boisjoli said during a post-earnings call after the company reported a smaller loss on North America demand.

The company said deliveries of off-road vehicles and personal watercrafts in the first half were hurt by the political and economic situation in Russia, its third-largest market as of financial year ended March 2014.

The Canadian recreational vehicle maker, which also operates in Brazil, Chile and Argentina, said these markets were growing a bit slower than originally planned.

The company, whose rivals include Arctic Cat Inc, Polaris Industries Inc and Yamaha Motor Co Ltd, gets nearly a third of its revenue from international markets.

BRP, spun off from Bombardier Inc in 2003, maintained its 2015 adjusted profit forecast of C$1.55-C$1.65 per share.   Continued...