(Reuters) - BRP Inc, the maker of Ski-Doo snowmobiles and Sea-Doo watercraft, said it expected a stronger second half as it launches new products and restarts manufacturing at its Queretaro factory in Mexico.
The company also reported a better-than-expected quarterly profit, helped by a foreign exchange gain on long-term debt and lower tax expenses.
BRP, whose rivals include Arctic Cat Inc, Polaris Industries Inc and Yamaha Motor Co Ltd, also makes Can-Am all-terrain and side-by-side vehicles and Rotax engines.
“We anticipate a stronger second half of the year resulting from strong spring snowmobile orders, the introduction of the Can-Am Outlander L ATV, the restart of the Sea-Doo Spark manufacturing in Queretaro and upcoming product launches,” Chief Executive Jose Boisjoli said in a statement.
The Valcourt, Quebec-based company’s net profit rose to C$28 million ($25.8 million) in the first quarter ended April 30 from C$25.7 million, a year earlier.
However, on a per-share basis, BRP’s net earnings fell to 24 Canadian cents from 25 Canadian cents.
The company, which was spun off from Bombardier Inc in 2003, reported an adjusted profit of 14 Canadian cents per share.
Analysts on average had expected 9 Canadian cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell 5.7 percent to C$758.6 million.
Shares of BRP, the trophy designer for the 2014 Formula 1 Grand Prix du Canada, closed at C$28.50 on the Toronto Stock Exchange on Wednesday.
The stock has risen 23 percent since the company listed on the exchange in May last year.
Reporting by Shubhankar Chakravorty and Anannya Pramanick in Bangalore; Editing by Kirti Pandey