Pleasure and Powerboat Companies See Improved Sales and Order Rates

The boat market may be coming back to life. Recent financial reports indicate that a number of companies have reported an increase in orders and sales while still others, after taking drastic cost-cutting measures, have moved from the loss to the profit column. Economists are also mildly optimistic that port traffic will soon increase.

Overall though, the pleasure and powerboat companies with the sleekest new designs have reported the most impressive economic gains. Down under, Australian boat manufacturer Riviera reported a 45 percent increase in its first quarter sales. For the period ending March 31, 2010, Riviera sold 36 new boats valued at over AUD$38 million. According to Riviera CEO John Anderson, “Riviera has achieved sales in all major regions including the United States, Europe, and Australasia, These sales figures are a result of Riviera’s exciting new model releases as well as significant sales being achieved from Riviera’s popular evergreen models.” Mr. Anderson went on to say that although the company’s new 43 Open Flybridge would not have its world release until the Sanctuary Cove International Boat Show in May, it already has achieved “sight unseen sales. “

Mr. Anderson also provided information on the weekly run rate and business performance at Riviera over the last year, “We are tracking ahead of our business plan and sales are certainly above all of our expectations. In the last eleven months over 100 new Rivieras have been sold by our global dealer network giving a weekly sales run rate of two-and-a-half new boats per week. In total retail value, this represents over (AUD) $102 million in sales.” The company also reported that it is actively expanding its work force, which now stands at about 350.

Among other signs of improvements in the sail boat and powerboat market is an increase in revenues from French boat and mobile home builder, the Beneteau Group. According to IBI Magazine, not only did that company report an increase in boat sales, over 1 percent for its first half of fiscal year 2010, but the company also indicated that its boat sales would increase by nearly 15 percent in 2010 to 568 million Euros. One of the reasons cited was Beneteau’s new boat models introduced in the autumn and winter. Beneteau’s new models include the Oceanis 50 and 58, designed by Nauta Design and Berret Racoupeau as well as two award winning boats, the Beneteau Swift Trawler 34 and the Beneteau First 35.

All of this is good news, none too soon, for Beneteau. The company, which obtains about 48 percent of its revenue from sailboats and another 27 percent from powerboats, was not spared in 2009’s boating market collapse. In 2009, Beneteau saw its consolidated sales plunge to 659 million Euros from 1055 million Euros in 2008.

Another sign that the boat market is coming back comes from YachtWorld, one of the major boat brokers. The brokerage service has reported that unit sales increased in March of 2010 to 2,574 boats up from 2009 for the same period last year. Dollar volume also increased from $167 million to $326 million. Driving the dollar volume was the sales of boats that were 55 feet or longer. Although first quarter boat sales pushed past 2009 and 2008 levels, they were still about a thousand short of 2005 records.