The big company view
Two of the biggest companies in our industry, Brunswick and West Marine Products, have just filed their 1st quarter 2011 results.
Reading them gives the big company perspective on what’s currently happening and what will happen in 2011.
The Brunswick Boat Group is a key component of the company and includes 16 brands. This segment reported net sales of $283.6m for the first quarter of 2011, an increase of 16% compared with $243.6m in the first quarter of 2010.
International sales, which represented 37% of total segment sales in the quarter, increased by 18% during the period.
For the first quarter of 2011, the Boat segment reported an operating loss of $3.8m, compared with an operating loss of $26.7m in the first quarter of 2010.
Brunswick reported a shift in its boat sales product mix towards aluminium and smaller boats - its sales of aluminium wholesale boat units in the first quarter have gone from 42% in 2008 to 58% in 2011, while exports of boats increased by 18%.
West Marine Products reported a first quarter 2011 net revenues of $113.8m and a loss of $12.3m compared to a net revenue of 109.6m and net a loss of $9.5m in the same period 2010.
Contributing factors to the decrease in gross profits were an increase in sales of higher price, but lower margin products - such as electronics - and lower sales of high margin products maintenance related products. West believes that the poor weather across most of the country in the first quarter had a negative impact on its earnings.
Both companies believe second quarter 2011 will be better than the first with Brunswick planning for a flat year in 2011 while West believe its sales will increase $5m or so during 2011.
