Marine Products Corp. plans 3Q production increase - Trade Only Today

Marine Products Corp. plans 3Q production increase

Chaparral and Robalo maker Marine Products Corp. plans to increase production gradually during the current quarter.
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Strong sales of Robalo outboard sportfishing boats, such as this R300, has helped the brand gain market share.

Strong sales of Robalo outboard sportfishing boats, such as this R300, has helped the brand gain market share.

Chaparral and Robalo maker Marine Products Corp. plans to increase production gradually during the current quarter after reporting strong sales in the second quarter.

Unit sales increased 10.9 percent, partially offset by a 2.9 percent decrease in the average selling price per boat, the company reported Wednesday.

“Our backlog and dealer inventory statistics were strong at the end of the second quarter,” Marine Products Corp. CEO Rick Hubbell said during a conference call with investors and analysts.

“Based on these factors, strong industry conditions and our optimism about the 2017 model year, we plan to increase production gradually during the third quarter. Our annual dealer conference is coming up in a few weeks, and we look forward to showing our 2017 models to our dealer network and gauging their reaction to our plans for the upcoming model year.”

Domestic net sales were strong, increasing by 13.6 percent in the second quarter, compared with the quarter last year, CFO Ben Palmer said during the call. International sales decreased 19.2 percent and represented 9.6 percent of total sales during the second quarter, a decline from 13 percent of total sales during the quarter last year.

The company announced a quarterly dividend of 6 cents a share on Wednesday.

“We continue to be pleased with the market share of all of our product categories,” Hubbell said. “Our Chaparral sterndrive product continues to hold the highest market share in its category, approximately 14.5 percent for the 12 months [that] ended March 31. Our Chaparral Vortex held the No. 2 position in the jetboat category and revolved among the top five manufacturers in the outboard sport fishing category.”

Robalo continues to gain market share, at 4.4 percent, edging up into the top five in its category, said Jim Landers, vice president of corporate finance.

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