Issue link: https://read.dmtmag.com/i/326874
LAUNCH www.BoatingIndustry.com July 2014 | Boating Industry | 9 HOT SPOTS Little Rock, AR 1.7% Atlanta, GA 39.8% Fort Myers, FL 27.7% Los Angeles, CA 40.2% Boat sales growing in most major U.S. markets Grouping all boat types together for the first quarter of 2014, sales are growing strong in most major marine markets across the United States, according to Tom Walworth of Statis- tical Surveys. Of the 11 markets analyzed, Los Angeles and Atlanta posted the biggest gains, at 40.2 and 39.8 percent, respectively, while Dallas- Fort Worth and New York showed the big- gest declines at -4 and -22.7 percent. Fort Myers, Florida, posted a 27.7-percent increase in boat sales, while Tampa-St. Petersburg- Clearwater saw local boat sales increase 19.1 percent during the quarter. Miami-Fort Lauderdale, FL 13.6% Houston, TX 13.1% Detroit, MI 4.1% Dallas-Ft. Worth, TX 4.0% New York, NY 22.7% Source: Statistical Surveys Inc. While Los Angeles and Atlanta were the hottest markets in Q1 '14, sales increased in nearly all major U.S. markets. Tampa-St. Petersburg-Clearwater, FL 19.1% BRUNSWICK, MALIBU, WEST MARINE AND MARINEMAX ANNOUNCE QUARTERLY RESULTS While it's old news to everyone in the outdoor recreation business, the extended, often brutal winter season dragged down quarterly earnings for many of the marine industry's largest players. Here is a recap of earnings from Brunswick, Malibu Boats, West Marine and MarineMax. Full earnings reports are available at BoatingIndustry.com. BRUNSWICK Blaming poor winter weather in key boating states, Brunswick Corp. reported sales of its engines and boats were down 3 percent in the quarter versus Q1 2013, with bad weather also affecting the bowling and billiards segments. For the first quarter of 2014, the company reported net sales of $969.2 million, down from $995.3 million a year earlier. For the quar- ter, the company reported operating earnings of $94.7 million com- pared to $89.9 million in 2013. Sales in the engine segment, which includes Mercury and the parts and accessories businesses, declined 3 percent worldwide from $521.8 million in 2013 to $505.1 million. Sales were down 5 percent in the United States, down 1 percent in Europe and down 6 percent for the rest of the world. Sales of both outboard and sterndrive engines were down, with modest growth in diesel engines. Sales in the boat segment, which includes the company's 14 boat brands, dropped 2 percent for the quarter from $289.7 million to $282.8 million. Operating earnings increased from $2.4 million to $8.4 million for the quarter due to improved margins from the company's restructuring and other efficiencies. CEO Dusty McCoy said he is optimistic about the rest of 2014 and 2015 – and that he is tired of talking about the weather. MALIBU In announcing its Q3 '14 results, Malibu Boats, Inc. reported its net sales for the quarter increased 6.9 percent to $50.3 million compared to the third quarter of the previous year. Unit volume increased 2.9 percent to 788 boats and net sales per unit increased 3.9 percent during the same period to $63,823. Gross profit for the quarter increased 7.2 percent to $13.4 million. "We had another very strong quarter — delivering on every operating and financial metric across the board," said CEO Jack Springer. "Throughout the quarter, deliveries and orders remained strong and sales growth was once again driven by increases in both unit volume and average selling price. Both Malibu and Axis INDUSTRY NEWS Continued on page 12 P08x12-BI14JUL-Launch.indd 9 5/28/14 11:29 AM