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Marine Products Corp. posts gains in Q1

Sales of larger boats like Robalo’s 242 Explorer center console helped boost earnings for the company.

Sales of larger boats like Robalo’s 242 Explorer center console helped boost earnings for the company.

Chaparral and Robalo boats parent company Marine Products Corp. saw net sales in the first quarter increase 9.1 percent to $77.5 million, the result of selling larger boats than in 2017.

The company saw a 9.6 percent rise in the average selling price of boats due to a model mix that included larger boats, as well as an increase in parts and accessories sales.

"Our first quarter 2018 financial results were driven by sales of several popular 2018 models, including the three new Chaparral SSX models and several of the larger Robalo Explorer models,” said Marine Products president and CEO Richard Hubbell in a statement.

Gross profit for the quarter was nearly $17.7 million, an 18.4 percent increase compared to gross profit of $14.9 million in the first quarter of 2017. The company said that increase was due to higher net sales and improved profitability.

Gross margin was 22.8 percent in the first quarter of 2018, compared to 21 percent in 2017, improving because of the increase in average selling price and improved manufacturing efficiencies.

Operating profit for the quarter was more than $9 million, an increase of 31 percent compared to almost $6.9 million last year.

Net income for the first quarter of 2018 was $7.6 million, increasing more than $2 million and 44.6 percent from 2017.

“Our dealer inventories have increased slightly, and backlog is higher than at this time in 2017, reflecting high levels of dealer demand during this retail selling season,” said Hubbell. “In addition, we are pleased to report continued strong market positions in both our sterndrive and outboard sport fishing boat product lines.”

For the 12-month period ending in December 2017, Chaparral maintained its multi-year position as the largest sterndrive manufacturer in its size category, with a market share of 16.7 percent, Hubbell said.

In addition, Robalo market position increased to become the third largest brand in its category, with a market share of 5.3 percent, he said.

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