(Reuters) - Canadian recreational vehicle maker BRP Inc (DOO.TO) reported a much better-than-expected quarterly profit, helped by higher revenue from its seasonal products such as Ski-Doo snowmobiles and Sea-Doo watercraft.
On an adjusted basis, the company earned 31 Canadian cents per share in the first quarter, more than double what analysts on average had estimated, according to Thomson Reuters I/B/E/S.
Revenue rose 18.4 percent to C$898.1 million ($729.9 million).
Revenue from seasonal products rose 46.9 percent to C$271.2 million, contributing about 30 percent to the total revenue.
The company said a ramp-up in production at its Querétaro, Mexico plant resulted in higher volume of personal watercraft being sold.
BRP last month recalled about 12,500 of its all-terrain vehicles (ATVs) as they failed to meet performance requirements of the federal ATV standard.
The company, which was spun off from Bombardier Inc (BBDb.TO) in 2003, said on Thursday its net income rose to C$83.1 million in the quarter ended April 30, from C$28 million a year earlier.
The Valcourt, Quebec-based company’s shares closed at C$27.03 on the Toronto Stock Exchange on Wednesday. The stock has risen 11.6 percent this year.
Reporting By Tanvi Mehta in Bangalore; Editing by Maju Samuel