Marine Products Corp. reports 2Q results

Marine Products Corp., builder of Chaparral and Robalo boats, saw a 9.9 percent increase in net sales.
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Robalo sportfishing models helped raise average selling prices for Marine Products Corp. in the second quarter.

Robalo sportfishing models helped raise average selling prices for Marine Products Corp. in the second quarter.

Marine Products Corp., builder of Chaparral and Robalo boats, saw a 9.9 percent increase in net sales and an 18 percent increase in gross profit in the second quarter, citing higher average selling prices due to a favorable model mix.

The company generated about $71.5 million in net sales versus nearly $65.1 million last year, and said the increase was due to a 3.3 percent increase in unit sales and a 5.1 percent increase in the average selling price per boat.

Sales of Robalo sportfishing boats and Chaparral H2O models were also higher, and average selling prices increased during the quarter due to “a favorable model mix” within all the company’s lines.

"Our second quarter 2017 financial results reflect the continuation of a strong 2017 retail selling season,” Marine Products president and CEO Rick Hubbell said in a statement. “Our Robalo outboard sport fishing boats continued to sell well, especially the Robalo 302 and the Robalo 242. We also generated strong sales volume within our Chaparral H2O outboards and our SSi and SSX Surf Series, both of which were new for 2017.”

The company’s backlog was slightly lower at the end of the second quarter, Hubbell said, as dealers prepare for the remainder of the 2017 selling season.

Gross profit for the quarter was nearly $16.3 million, an 18 percent increase over last year’s gross profit of $13.8 million last year.

Gross profit for the second quarter increased compared to the prior year due to higher net sales.

Gross margin was 22.8 percent in the second quarter of 2017, compared to 21.2 percent in 2016.

Gross margin improved during the second quarter of 2017 as compared to the prior year due to the increase in average selling prices as well as manufacturing efficiencies resulting from higher production.

Operating profit for the quarter was $8.7 million, an increase of 29.9 percent.

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