Following a late spring, some of the quarterly earnings news was good for boatbuilders, though maybe less so for dealers.
Earnings and Analysts
Quarterly earnings statements from public companies and periodic reports from analysts reveal the health and direction of the industry.
GE Capital’s Commercial Distribution Finance business said in a recent report that after a slow start resulting from a harsh winter and a cold spring, the recreational marine industry is showing accelerated growth.
SureShade said sales of its marine shade systems more than doubled in the first half of the year.
Fourth-quarter sales declined at Twin Disc, but the company said today that profits were higher than in the quarter a year earlier.
Sales of Robalo’s larger sportfishing and bay boats increased in the second quarter despite encountering “a real struggle”in regions affected by bad weather this spring.
Marine Products Corp., the builder of Chaparral and Robalo boats, today announced a 13.6 percent second-quarter sales increase, citing higher unit sales and more sales of larger boats during the quarter.
New preliminary data released Friday by Statistical Surveys confirm a Wells Fargo analyst’s assessment that a sluggish early start to 2014 in boat sales is now showing signs of an uptick.
Wells Fargo analysts think investors have become overly focused on the fact that May U.S. boat sales were down without considering several underlying nuances “skewing May data.”
Wells Fargo analysts are reiterating their belief that the overall retail boat industry will be up between 8 and 9 percent in light of May sales data released by Statistical Surveys.
Marinized LED light manufacturer Seamaster Marine Products reported a 30 percent sales increase during the last six months.