Marine Products Corp. reports 2Q resultsPosted on
Marine Products Corp. today reported second-quarter net sales of $38.45 million, a 32.2 percent increase from $29.1 million last year.
Marine Products is the builder of Chaparral and Robalo boats.
The increase in net sales for the quarter that ended June 30 was attributable to a 58.6 percent increase in the number of boats sold, partially offset by an 18.1 percent decrease in the average selling price per boat, the company said. Average selling prices reflect the introduction of value-priced Chaparral H2O and Robalo sportfishing boats, which began this model year.
Overall market conditions continued to improve during the 2012 retail selling season, and Marine Products Corp. participated in this market improvement through the successful introduction of our value-priced Chaparral H2O and Robalo models, Marine Products CEO Richard A. Hubbell said said in a statement. We continue to believe that our value-priced Chaparral and Robalo models meet consumers desire for a high-quality product and offer a favorable introduction for the first-time buyer to our two brands.
Gross profit for the quarter was $7.3 million, or 19.0 percent of net sales, compared with a gross profit of $4.9 million, or 16.9 percent of net sales, in the prior year. The increase in gross profit in the second quarter, compared with the prior year, was the result of production efficiencies from higher volumes.
Operating profit for the quarter increased to $2.76 million, compared with $1.22 million in the second quarter of last year because of increased net sales and gross profit, partially offset by higher selling, general and administrative expenses.
Net income for the quarter was $2.17 million, compared with $1.23 million in the prior year. Diluted earnings per share for the quarter were 6 cents a share, compared with 3 cents a share in the prior year.