Telwater helps soften Evinrude closure blow

BRP last night revealed its earnings figures for the three-month period ending on April 30, reporting a $C235.1 million ($A257 million) loss for the quarter.

The financial results come in the wake of BRP announcing yesterday that it would quit its Evinrude outboard engine business and instead use Mercury Marine as the preferred supplier to power its products globally.

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Contributing to BRP's Q1 loss was a 25.9 per cent fall in revenue from marine products compared with the same quarter last year. This was largely led by a North American outboard engine sales slump that “decreased on a percentage basis in the mid-forties range” compared with the same period last year.

“The decrease was mainly due to the COVID-19 pandemic, partially offset by the acquisition of Telwater Pty Ltd during Fiscal 2020,” BRP said in a statement announcing the result.

The downturn saw the marine division losing $C127.3 million for the three-month period. The financial statement shows the closure of Evinrude has cost BRP an estimated $C171.4 million and the loss of around 650 jobs globally.

Gold Coast-based Telwater, Australia’s largest plate boat manufacturer, has said no jobs will be lost in Australia as a result of the Evinrude closure.

However, the worst is yet to come, with BRP anticipating that this current period will see its global revenue fall around 40 per cent as it brings parts of its business closed in the wake of the COVID-19 pandemic back online, falling demand for its products outside the US, and the loss of its outboard engines business.