Beneteau upbeat on outlook despite credit crunch
PARIS, Jan 31 (Reuters) - Beneteau (CHBE.PA), the world's leading sailboat maker, on Thursday reaffirmed its medium-term growth forecasts, dismissing fears the global financial crisis could blow its business plan off course.
In a trading update, the company also confirmed it expected 2008 sales to rise 9.7 percent to 1.112 billion euros ($1.65 billion) and for operating profit to grow 11.3 percent to 151 million.
"Following the main shows held around the world, the group has a good level of visibility over the boat business," Beneteau said in a statement, adding its order book at end-January covered 80 percent of expected sales.
"Operating income (in 2007/08) on the boat business is expected to represent 15 percent of sales, some two years ahead of schedule," it added.
Beneteau's share price has fallen by around a third since the firm published annual results last November. The share closed down 0.6 percent at 15.41 euros on Thursday, giving the group a market value of about 1.3 billion euros.
Other French yacht makers, such as Rodriguez (RDGP.PA), Couach YACHT.PA and Poncin (PONY.PA) have also seen their market value plummet since last summer amid fears that demand, especially in the United States, could dry up.
But Beneteau said it expected the 14 billion euros global pleasure boat business to continue to expand after it grew by roughly 3.5 percent annually between 2002 and 2007.
"Despite the unrest seen in the financial environment over the last few months, the main international shows have confirmed this underlying trend," Beneteau said. Business in Europe was particularly strong.
It said it expected its sailboat business to grow 6 percent a year through to 2010, motorboats to grow by 10 percent a year and its smaller mobile home unit's sales to expand 5 percent. Profitability should also improve, it forecast. (Reporting by Nick Antonovics; Editing by David Cowell)
