Bombardier Recreational Products profit drops on weak Russian Ski-Doo outlook

The company that makes Ski-Doos says its profit is down and its outlook is weakening in part because the cratering ruble is making it too expensive for Russians to buy its products.

Bombardier Recreational Products said Friday revenue for the three months ended Oct. 31 increased to $918 mlillion, up six per cent or $52 million from the same time last year. But profit came in at just over $37 million, down from $48 million in the same period last year.

A strong dollar and euro were good for sales of some of the company's products, which include Sea-Doo personal watercraft and Can-Am wheeled vehicles. But Russia's weaker ruble has been a drag on global sales of its iconic snowmobiles.

"“Earlier this year, we identified a currency risk in Russia and the situation has deteriorated significantly with a steep decline in the value of the ruble since the end of October," BRP's president José Boisjoli said. "The outcome is higher costs for imported products and this affects our distributor’s sales to consumers."

Currency fluctuations are a two-way street, however, as the fall of the Canadian dollar against the  U.S. dollar and euro made their products more attractive in some local markets.BRP estimated that resulted in a $29 million revenue increase.

The Valcourt, Que.-based company cut its revenue growth forecast to eight to 12 per cent for the full year which will end in January. That's down from nine to 13 per cent earlier this year.