International Boat Industry – August-September 2019

4 AUGUST–SEPTEMBER 2019 | International Boat Industry ibinews.com

HEADLINES International Marine News

“

1

Trump threatens additional

10% tariff on Chinese goods

ibinews.com August 2

2

Brunswick’s 2nd quarter

results show a weakening

US market

ibinews.com July 25

3

BIA president calls boating

“the drug of choice”

ibinews.com August 5

4

Brunswick consolidates

brands to form Venture

Group

ibinews.com July 29

5

Groupe Beneteau offers two

new models at Sydney show

ibinews.com August 1

6

Australian boating market

a “sleeping giant”

ibinews.com July 29

7

Canada implements new

legislation to deal with

abandoned boats

ibinews.com July 31

8

BRP’s Telwater acquisition

completes

ibinews.com August 2

9

Sunseeker London delivers

three 100ft-plus yachts in July

ibinews.com August 1

10

Australian mother charged

with buying “getaway

yacht” for son to evade

cocaine charges

ibinews.com July 30

USA US dealership chain

MarineMax released its 2019

third quarter results, marking

year-over-year gains in both

revenue and net income. The

company reported revenues of

US$383.5m for the quarter ended

June 30, 2019, a 6.0% increase

over the $361.3m in revenues

reported for the same period

last year. Net income for the

quarter grew by 4.5% to $19.1m,

compared against $18.3m for

Q3 2018. Earnings per diluted

share also grew, marking a 6.3%

increase to $0.84 compared to

$0.79 for the previous Q3.

MarineMax further noted

same-store sales growth of 3.0%

for the quarter, on top of an

8.0% gain for the previous third

quarter.

“Producing same-store

sales growth of 3% driven by

even greater unit growth,

MarineMax outperformed

during a challenging quarter for

the industry,” said MarineMax

president Brett McGill.

CANADA The government of

Canada is busy promoting the

official implementation of its

new Wrecked, Abandoned

or Hazardous Vessels Act,

which provides fines of up

to C$50,000 for individuals

and $250,000 for businesses

which are found to be guilty of

abandoning boats.

The new legislation, which

became law on July 30, increases

owner responsibility and

liability for both commercial

and recreational vessels, and

enables proactive intervention

when problem vessels begin to

pose navigational hazards. “This

significant legislation is making

vessel owners responsible under

the law for the safe disposal of

their vessels,” said Minister of

Transport, Marc Garneau. “Most

boat owners are responsible,

but for those few who are not,

we now have the ability to hold

them to account.”

USA Brunswick Corp has

reported second-quarter and

half-year financial results,

posting a 6% increase in year-

to-date net sales (adjusted for

the disposition of the yacht

sector) up to $4.21bn. Second

quarter net sales also saw 6%

growth (adjusted) to $1.16bn.

However, performance shows a

mixed picture across segments

where the company confirmed

a challenging first half, due

in large part to poor weather

across most regions of the US

and Canada resulting in lower

demand for value-priced boats

and engines.

For the first six months of

the year, international sales

overall were up 2% with the

Engine & Boat businesses

contributing equally to growth,

except in Europe. Notably,

international boat sales –

which represented 26% of

total revenues – were down

17% for the second quarter due

primarily to a supply disruption

with contract manufacturing

in Europe. “Because boats are

typically shipped in Europe

without engines which are

then installed by the dealer,”

explained Brunswick’s CEO

David Foulkes in a webcast with

investors, “the slowdown in

boat shipments did not affect

engine sales in the region over

the same period.”

Across the business as a

whole, Parts & Accessories

drove most of the growth with

net sales up 14%, while engine

net sales were down 5% in the

quarter. Sales of Brunswick’s

marine engines and accessories

in its second quarter were up

4.5% at $871.5m due in large due

to the 2018 acquisition of Power

Products. Demand for engines

larger than 150hp also helped

offset softness in the smaller

horsepower motors. The

segment reported earnings of

$164.6m compared to $149.1m

in the second quarter of 2018.

Boat sales were down 2% for

the quarter to $367.3m and up

1% year-to-date. Brunswick’s

boat segment reported net sales

of $366.6m for the quarter down

7.2% compared to the same

period in 2018, which included

$19.9m of Sport yacht and Yacht

Sales (now discontinued).

At the outset of the call,

Foulkes noted: “The demand

environment in the first-half

of 2019 was challenging in

certain of our businesses.” Data

presented showed retail sales in

the main powerboat segments

7% down nationally in the US

for the first half of the year.

Brunswick financials: US market turning?

 MarineMax rising to

challenging market conditions

TOP 10 MOST

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Canada targets abandoned boats

MarineMax Q3 sales up 6%

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