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BRP Reinforces Its Financial Position To Emerge Stronger From The Economic Crisis
http://corp.brp.com/en-CA/Media.Center/Press.Releases/1/20090608.htm?utm_source=BRP&utm_medium=RSS Valcourt, Québec, June 8, 2009 – Despite the
turbulence in the financial markets, BRP and the controlling shareholders of its
parent company, have raised CAN $130 million for the purpose of further
strengthening BRP’s financial position, including: "The Powersports industry is suffering and times have recently been tough for
BRP but we have a solid plan going forward which is the result of the concerted
efforts of all BRP stakeholders worldwide," said José Boisjoli, BRP's president
and chief executive officer. ''We need to adjust to new business conditions
resulting from the world economic crisis, while supporting our network and
maintaining our brands through innovation,'' he added. In December 2008, BRP announced a major company restructuring to reduce costs
and increase efficiency. Overhead costs were reduced significantly as was the
workforce, some divisions were merged, and 2009 production was brought down by
almost 30% to reduce inventory at the dealer level. ''Everybody contributed to ensure that BRP remains competitive and returns to
growth rapidly. With these additional funds, we will have the option of buying
back our debt and we will be in a position of even greater strength, to take
advantage of opportunities when the global economy is back on track, "concluded
Boisjoli. Bombardier Recreational Products Inc. (BRP), a privately-held company, is a
world leader in the design, development, manufacturing, distribution and
marketing of motorised recreational vehicles. Its portfolio of brands and
products includes: Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and sport
boats, Evinrude and Johnson outboard engines, direct injection technologies such
as E-TEC, Can-Am all-terrain vehicles and roadsters, as well as Rotax engines
and karts. With manufacturing facilities on three continents, BRP products are
distributed in more than 80 countries. Sea-Doo, Ski-Doo, Lynx, Evinrude, Johnson, Can-Am, Rotax,
E-TEC and the BRP logo are trademarks of Bombardier Recreational Products Inc.
or its affiliates. All other trademarks are the property of their respective
owners. Readers are cautioned not to place undue reliance on
forward-looking statements. BRP cannot guarantee future results, trends, events,
levels of activity, performance or achievements. BRP does not undertake and
specifically declines any obligation to update, republish or revise
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrences of unanticipated events.
• $30 million of
reimbursable funds from Investissement Québec (IQ) to support the company’s
R&D activities, and
• $100 million raised by BRP’s controlling
shareholders and their affiliates, including a $50 million loan from the Société
générale de financement du Québec (SGF) to support BRP’s operations.
