Marine Products Corp. reports 3Q results

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Marine Products Corp., the builder of Chaparral and Robalo boats, today reported a 9.1 percent increase in net sales for the third quarter this year versus last year.

Net sales were $42 million, compared with $38.5 million in the same period in 2012 at the Atlanta-based builder. The gain was primarily attributable to an increase in the average gross selling price per boat.

“Our financial results for the third quarter reflect a moderately improved domestic retail selling season, compared to 2012, and continued market approval of our products,” Marine Products CEO Richard Hubbell said in a statement. “We believe that the 2013 retail selling season in many regions of the United States was negatively impacted by a cold, rainy spring. While the retail selling season improved, compared to last year, it was not as strong as we had expected. In spite of this, the market enthusiastically received our 2013 and 2014 models. In particular, our Robalo offshore sportfishing boats sold well. At the end of the quarter our dealer inventories and order backlog were consistent with normal levels for this point in the year, so we believe that our current production levels are appropriate.”

Gross profit for the quarter that ended Sept. 30 was $7.7 million, or 18.4 percent of net sales, a 4.8 percent increase from gross profit of $7.4 million, or 19.2 percent of net sales, in the same period last year. As a percentage of net sales, gross profit decreased because of higher employment costs in the quarter, compared with the prior year, partially offset by lower materials costs as a percentage of net sales because of a favorable model mix.

Net income for the quarter was $2 million, or 5 cents a diluted share, compared with $2.1 million, or 6 cents a share, in the 2012 quarter.

Updated market share statistics from Statistical Surveys show that for the first six months of 2013 Chaparral’s share of the 18- to 35-foot sterndrive market grew to 14 percent, compared with 11.6 percent during the same period in 2012, giving the brand the largest market share within the segment, Hubbell said.


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