FollowBRP Inc is the creator of Ski-Doo watercraft and Ski-Doo snowmobiles. The company cut its forecast for its full-year revenue and earnings. The reason for this is the fact that the company is anticipating a weak ruble to slam sales in the country of Russia. BRP Inc sent its shares by as much as 17 percent to record low. It also reported a devastating lower-than-anticipated profit for the third quarter of this fiscal year.
The Canada-based recreational vehicle maker said the distributors in the country of Russia have made their snowmobile orders for the peak winter seasons into half simply because of the increasing price for imports.
The ruble has dropped by more or less a third against the euro starting from the end of July 2014. It fell down due to the drop of oil prices in Western sanctions over the involvement of Moscow in Ukraine.
The reason why BRP sees weak sales with Russia’s weak order is due to the fact that the company considers the country of Russia as its third largest market all over the world. Of course, if they will decrease their volume orders, the company will also lose a lot on its overall sales, revenue and profit.
