June 9, 2016 / 10:23 AM / 3 years ago

Ski-Doo snowmobile maker BRP's profit misses estimates

A member of the Serbian special police force patrols the village of Lucane on a Ski-Doo, in this file photo from February 2, 2001. REUTERS/Goran Tomasevic

(Reuters) - Canada’s BRP Inc (DOO.TO) reported a lower-than-expected quarterly profit as the company offered aggressive promotions to stimulate demand for its snowmobiles amid poor snowfall.

BRP, which makes Ski-Doo snowmobiles and Sea-Doo watercraft, said gross margin for the first quarter ended April 30 slipped to 20.9 percent from 23.7 percent a year earlier.

However, the company raised its adjusted earnings forecast for the fiscal year as it expects to launch new products in the coming months.

BRP now expects earnings of C$1.79-C$1.89 per share for the year ending January 2017, compared with C$1.75-C$1.85 per share it had estimated previously.

The company’s net profit rose 33.2 percent to C$110.7 million ($87.07 million), or 96 Canadian cents per share, from a year earlier.

Revenue rose 3.5 percent to C$929.9 million.

The Valcourt, Quebec-based company reported an adjusted profit of 4 Canadian cents per share, missing analysts’ average estimate of 6 Canadian cents, according to Thomson Reuters I/B/E/S.

Reporting by Manish Parashar in Bengaluru; Editing by Anil D'Silva

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