Brunswick CEO: The Boating Market Is 'Very Powerful, Very Strong And Growing Very Much'

As the economy continues to improve, boat maker Brunswick Corporation BC is seeing good times as is evident by its recent quarterly results and the surge in its stock price, up over 33p in last 6 months.

Brunswick CEO Dusty McCoy, was on CNBC Friday to talk about who iare the new buyers of boats and currency headwinds that the company faces.

With Boat Sales Picking Up In Recent Quarters, Who’s Buying These Boats?

“Two different groups, the top-end of the market is red hot…a lot of our bigger models are completely sold out over the year. Then [point] two is fishing boats, which tend to be smaller, different income level have also now begin to reach pre-recession levels. So, at one of the market and the other end of the market, the market is very powerful, very strong and growing very much.”

How Are You Able To Increase Margins While Keeping The Costs Of The Boat Low?

“A couple of things, we are all over in the boat side of the business working off platforms. So, it used to be that for a new model we would treat it as distinct entities, with [all of our] money , just around one model. Now, we are able to build our platforms and get several models off the same platform, permits us to get a lot of new product to the market at lower cost.”

Currency Headwinds

“We are 65p U.S., 35p outside the U.S. for all of our businesses […] so currency is going to be a headwind. We have said it’s going to hit on translation 2.5p of sales, 7p of earnings is going to be impacted by the translation, [impact] of the rising dollar.”