Marine Products Corp. reports 3Q results - Trade Only Today

Marine Products Corp. reports 3Q results

Marine Products Corp., the parent company of Chaparral, Robalo and Vortex, reported a 24 percent rise in third-quarter net sales.
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Marine Products Corp., the parent company of Chaparral, Robalo and Vortex, reported a 24 percent rise in third-quarter net sales, attributing the increase to Robalo and Chaparral outboard boat sales.

The company generated net sales of $47 million during the quarter that ended Sept. 30 and gross profit for the quarter was $9.87 million, or 21 percent of net sales. That is a 41.7 percent increase from $6.97 million in the quarter a year earlier, an increase the company chalked up to higher gross margins.

"We are pleased to report continued growth in sales of our Robalo outboard sport fishing boats during the third quarter,” Marine Products president and CEO Richard Hubbell said in a statement. “In addition, we reported increased sales of our Vortex Jet Boats and Chaparral SunCoast outboards, which are new in 2015.”

The company reported a profit of $3.1 million, or 8 cents a diluted share, for the quarter, a 65 percent increase from $1.9 million, or 5 cents a share, a year earlier. Operating profit was $4.45 million, an increase of 72.9 percent from $2.6 million a year earlier.

Profitability improved because of efficiencies gained from higher unit production, Hubbell said.

“As the retail selling season for 2015 concludes, we are increasingly optimistic about the selling environment for our products,” Hubbell said. “The market for recreational boating continues to improve, and our dealers are enthusiastic about our 2016 models and are looking ahead to the winter boat show season. Although the international market for recreational boat sales continues to be weak, we note that our domestic sales increased by 32.4 percent during the third quarter of 2015, compared to the prior year.”

Dealer inventories are comparable to the end of the second quarter and to this time last year and the company’s backlog is strong, he said.

“For these reasons, we have increased production during the fourth quarter in order to have sufficient current model-year inventory to satisfy dealer demand,” Hubbell said.

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