Brunswick to sell Sea Ray

Status
Not open for further replies.
Interesting article - huge shifts in the boating industry.

Here’s a copy and paste from the articles which doesn’t make any sense to me - is this a typo or is it REALLY that bad at Sea Ray?

“a Brunswick spokesperson said that projected 2017 Sea Ray sales are $380,000 and that volume in terms of units was flat.”
 
Gem Morris said:
Interesting article - huge shifts in the boating industry.

Here’s a copy and paste from the articles which doesn’t make any sense to me - is this a typo or is it REALLY that bad at Sea Ray?

“a Brunswick spokesperson said that projected 2017 Sea Ray sales are $380,000 and that volume in terms of units was flat.”
Click to expand...


Pretty sure they mean earnings.

3rd quarter report.

Boat Segment
The Boat segment, which manufactures and distributes recreational boats, reported net sales of $309.3 million for the third quarter of 2017, a slight increase from $307.0 million in the third quarter of 2016. International sales, which represented 22 percent of total segment sales in the quarter, increased by 8 percent compared to the prior year period. For the third quarter of 2017, the Boat segment reported operating earnings of $0.1 million. This compares with operating earnings of $6.8 million in the third quarter of 2016.
 
I think some folks are weary of the huge costs of new boats and the drastic depreciation of value that is typical of the industry. 150 grand for a wake boat? Yikes! A lot of folks over buy and have to sell their boats which keeps the used boat market over full. After all, the typical milk bottle boat can be purchased used for 50 cents on the dollar at year two or three and still retains the "new" factor. E-bay is fascinating to watch in the boats classifieds. You can clearly see the depreciation curve. So, it isn't that people aren't buying boats, they are just being smart and buying used. So, the manufacturer suffers, but recreational boating buzzes right along.
 
RE: the US Marine industry, I read a few months ago that 'very high end' and 'very low end' new boats were selling well, with middle market boat sales not good in the US market. This trend was putting big pressure on the used boat market with significant depreciation lowering prices significantly across the board - the 50% depreciation number mentioned earler in this thread is very real after just a few years and goes to 75% quickly. The good news is there are some great deals nationwide on very nice used boats.

The bad news is that MANY boats sold at the boat show are sold with 15-20 year financing terms and no money down! So a $100k boat purchased 3 years ago now carries a balance still of $95k with payments monthly of of $965! And the boat is resell-able today for $50k-$70k. Ouch. And this will only get worse by year 5 of ownership.

Bringing this conversation back to Lake Powell specifically, the worst depreciation I regularly see occurs when someone buys a "share" in a brand new houseboat - within 5 years I see many of these shares on the market for 25% of their original value. Ending on a positive note - once at that level, the share prices seem to remain relatively steady for years making for some great "share" deals on nearly new houseboats.
 
Last edited:
Ryan, thanks for this information. Many years ago I was a big Sea Ray fan, but after their purchase by Brunswick, the quality took a hit. A few years back a friend of mine was looking at Mastercraft ski boats about 5 years old, and all the owners wanted was him to take over payments. Unfortunately, the principal had not really gone down, and he could buy a new boat for about the same price. The long term financing available hurts the original buyer if he sells in the first few years..
 
Bill Sampson said:
Ryan, thanks for this information. Many years ago I was a big Sea Ray fan, but after their purchase by Brunswick, the quality took a hit. A few years back a friend of mine was looking at Mastercraft ski boats about 5 years old, and all the owners wanted was him to take over payments. Unfortunately, the principal had not really gone down, and he could buy a new boat for about the same price. The long term financing available hurts the original buyer if he sells in the first few years..
Click to expand...

Remember back in the "70's" when AMF bought Harley Davidson. I was building and working on Harley's then and the quality of the HD brand went into the toilet. I believe that Brunswick and AMF were the same. Sq
 
I have had a few Sea Rays. Loved them all. Hate to see any manufacturer struggle.

I've never understood the pricing. Put less than $500 in fiberglass into a mold. $500 in vinyl upholstery materials, sewn in house. $2000 in instruments and electronics.
Engine and outdrive are $12000 tops, and Mercury and Sea Ray have financial interests in each other, so no one is paying full retail between the two of them.

Now sell it for $100K, in the case of a 24-27 foot bow rider.

That sounds profitable to me.
 
Squirrel said:
Remember back in the "70's" when AMF bought Harley Davidson. I was building and working on Harley's then and the quality of the HD brand went into the toilet. I believe that Brunswick and AMF were the same. Sq
Click to expand...
I agree with you on the AMF Brunswick merger. Harley Davidson was bought back in the nick of time. I remember when Coleman bought Mastercraft boats and a few other companies out of their normal realm. Again the quality suffered.
 
Pegasus said:
Bringing this conversation back to Lake Powell specifically, the worst depreciation I regularly see occurs when someone buys a "share" in a brand new houseboat - within 5 years I see many of these shares on the market for 25% of their original value. Ending on a positive note - once at that level, the share prices seem to remain relatively steady for years making for some great "share" deals on nearly new houseboats.
Click to expand...

I have intended a nearly new houseboat to be my next purchase as the family grows - perhaps 5-10 years from now. Looking forward to one of those bargains you describe.
 
Sad to hear. Our 2000 240 Sundancer was tops in quality! We bought it barely used (just over 100 hours) in 2002 for $45000 ($65000 for the 2002 model). We enjoyed it for 8 years, and sold it for $22,000 in 2010, at the bottom of the market, due to health reasons. We definitely got our moneys worth in enjoyment of Powell!

Contrary to the myth, the best day was when I bought that boat. One of the worst days was when I had to sell her!
 
Status
Not open for further replies.
Back
Top