Ski-Doo maker BRP suspends dividend to preserve financial flexibility

VALCOURT, Que. – BRP Inc. beat profit expectations for its fourth quarter, but suspended its dividend in an effort to preserve its financial flexibility as it deals with the issues related COVID-19.

The maker of Ski-Doo snowmobiles and Sea-Doo watercraft had paid a quarterly dividend of 10 cents per share.

The suspension of the payment to shareholders came as the company reported a fourth-quarter profit attributable to shareholders of $118.4 million or $1.32 per diluted share, up from $82.7 million or 84 cents per diluted share a year earlier.

Revenue totalled nearly $1.62 billion for the quarter ended Jan. 31 compared with nearly $1.51 billion in the same quarter a year earlier.

BRP says its normalized profit for the quarter amounted to $1.12 per diluted share, up from 88 cents per diluted share a year earlier.

Analysts on average had expected an adjusted profit of $1.09 per share, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published March 20, 2020.

Companies in this story: (TSX:DOO)