Marine Products Corp. reports 2Q results - Trade Only Today

Marine Products Corp. reports 2Q results

Sales at Marine Products Corp. increased 9.4 percent in the second quarter to nearly $65.1 million.
Author:
Publish date:

Sales at Marine Products Corp. increased 9.4 percent in the second quarter to nearly $65.1 million and the company said it saw a 10.9 percent increase in unit sales, which was partially offset by a 2.9 percent decrease in the average selling price of a boat.

The company said today that it generated higher unit sales in product lines that include Robalo sportfishing boats, the largest Chaparral H20 model and Chaparral SunCoast Sportdecks. The company said it intends to increase production at the end of the third quarter as it introduces 2017 models if the positive momentum continues.

Average selling prices decreased during the quarter that ended June 30 because of a change in model mix, the company said.

Gross profit for the quarter was $13.8 million, a 9.6 percent increase from $12.6 million in the same period last year, because of higher net sales. Gross margin was 21.2 percent in the second quarter for both years.

"Our second-quarter financial results reflect a strong retail selling season and the continued popularity of many of our new models,” Marine Products president and CEO Richard Hubbell said in a statement. “As we reported at the end of the first quarter, our Robalo outboard sportfishing boats continued to sell well in the second quarter, especially the new Robalo 160. We also generated higher sales of our Chaparral SSX bowriders and the largest of our Chaparral H2O sport boats. In addition, sales of our Chaparral Vortex jetboats have benefited from strong dealer and consumer demand this year.”

Operating profit for the quarter was $6.7 million, an increase of 4.5 percent from $6.4 million in the quarter of last year. Net income was $4.8 million, or 13 cents a diluted share, an 8.8 percent increase from $4.4 million, or 12 cents a share, a year earlier.

Net sales for the six-month period that ended June 30 were $128.7 million, an increase of 16.9 percent from the first half of the previous year.

Net income for the six-month period was $8.7 million, or 23 cents a diluted share, compared with $7.4 million, or 20 cents a share, last year.

"At the end of the second quarter, our dealer inventory was lower than at the end of the first quarter, and our order backlog had increased,” Hubbell said. “The most recently available market-share statistics show that our Chaparral sterndrive boats continue to hold the highest market share in their category. Our annual dealer conference will take place in the next few weeks, and we look forward to our dealers' reception to our 2017 models and learning about their perception of consumer demand for the coming model year. If our near-term business indicators continue to be strong, we intend to increase production at the end of the third quarter as we introduce our 2017 models.”

Related