Boating Industry

March 2016

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8 | Boating Industry | March 2016 LAUNCH Analysis, data, solutions, news and perspectives to move your business forward. BY JONATHAN SWEET The final quarter of 2015 proved to be a good one for the publicly traded companies in the industry, with Brunswick, MarineMax, Malibu, Marine Products and MasterCraft all showing growth. Several of the companies reported chal- lenges in Canada and overseas, but that was offset by strong numbers for the U.S. market. BRUNSWICK REPORTS 7 PERCENT SALES INCREASE FOR 2015 Brunswick Corp. reported higher sales and earnings for the year and the fourth quarter. Sales for the marine portion of Bruns- wick's business were up 6 percent for the quarter and 8 percent for the year. "Our full-year revenues increased by 7 percent; 11 percent on a constant cur- rency basis," said chairman and CEO Dusty McCoy. "Our top line reflected strong growth rates in fiberglass sterndrive/inboard and outboard boats, outboard engines and marine parts and accessories." Company executives expressed optimism about 2016 as well. Overall, Brunswick is forecasting revenue growth of 9 to 11 percent in 2016, with mid- to high-single-digit growth in both engine and boat sales. Sales for the marine engine segment (which includes parts and accessories) were up 6 percent for the year at $2.3 billion and up 2 percent for the quarter to $474.7 million. The boat group had sales of $1.27 billion for the year, up 12 percent from 2014, and $336 million for the quarter, up 14 percent. Outboard sales continue to grow, espe- cially in the saltwater, commercial and re- power markets, as new engines introduced last year are driving market share gains. Sterndrive sales continue to be "challenged," although Mercury's market share is stable, Schwabero added. SALES UP 33.2 PERCENT FOR CHAPARRAL, ROBALO PARENT Marine Products Corp., manufacturer of Chaparral and Robalo, grew sales, profits and income for the fourth quarter of 2015 on the strength of outboard sales, the com- pany reported. For the quarter ended December 31, 2015, Marine Products generated net sales of $49,881,000, a 33.2 percent increase over the $37,441,000 for the same period in 2014. The company credited higher unit sales of Robalo outboard sport fishing boats and Chaparral Suncoast outboard boats during the quarter. "The 2015 retail selling season was strong, and the dealer and customer reception of many of our new product offerings has been positive," said Richard A. Hubbell, Marine Products's president and CEO. "Unit sales growth among our Robalo sport fishing boats continues to be strong, particularly in sales of our new Robalo 160 models. Chaparral Sun- Coast outboard sales continued to grow as well and we continue to be optimistic about the SunCoast models that we introduced for the 2016 model year." Gross profit for the quarter was $11,117,000, or 22.3 percent of net sales, a 49.5 percent increase compared to gross profit of $7,434,000, or 19.9 percent of net sales, a year earlier. Higher production volumes, which led to improved manufacturing efficiencies, helped boost those numbers, the company said. "Early results of attendance and sales from the 2016 boat show season are favorable, and our order backlog is higher than at this time last year," Hubbell said. MARINEMAX REPORTS HIGHER REVENUE, SALES FOR Q1 MarineMax, Inc. reported higher sales and revenue results for its first quarter of fiscal 2016 ended December 31, 2015. Revenue grew more than 7 percent to $169.5 million for the quarter ended Good results for public boating companies to close out 2015 Sales in Brunswick's engine group were up 6 percent in 2015.

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