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

Marine Products Corp. reports 3Q results

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Third-quarter net sales at Marine Products Corp. dipped about 10 percent to $37.9 million with gross profits seeing a 10 percent drop because of the sales decrease.

Net income for the quarter that ended Sept. 30 fell 6 percent to $1.9 million, or 5 cents a diluted share, from $2 million, or 5 cents a share, in the quarter a year earlier, the company said in a statement.

The decrease in sales was attributable to lower unit sales of the company’s Chaparral model lines, compared with the 2013 quarter.

That was partially offset by increased unit sales of Robalo boats and Vortex jetboats, which were introduced in the first quarter this year and accounted for between 5 and 10 percent of unit sales in the third quarter, CEO Richard Hubbell told investors and analysts today during a conference call.

Average selling prices also declined because of changes in the model mix in several of the company’s Chaparral models during the quarter, compared with the prior year.

Gross profit for the quarter was $7 million, or 18.4 percent of net sales, a 9.9 percent decrease from gross profit of $7.7 million, or 18.4 percent of net sales, in the same period the previous year.Gross profit declined because of lower net sales.

Chaparral sterndrives continue to hold the No. 1 market share spot in their category, Hubbell said, with a 14 percent share of the 18-to-35-foot sterndrive market — “a slight increase, compared to prior reporting,”he said.

Robalo grew share and had 3 percent of the offshore sportfishing market, he said.

International sales, which comprised about 13 percent of overall sales, decreased 8.4 percent, largely because of weakness in Canada. The northeastern United States also saw a softening because of poor early season weather, vice president of corporate finance Jim Landers said.

A slow start to the boating season was the reason production slowed, Landers said.

“We were responding to a long winter, a cool spring and rising gas prices, and just a little bit of concern that the 2014 retail season was going to be weak,” Landers said. “It finished strongly, but we kept production down a little bit because we felt like 2015 was going to be a good year and we wanted inventories to be low. Sterndrive boat sales in general continue to languish, so we keep an eye on that as well. Robalo’s sales increased, but sterndrives are not very strong.”

The company expects to see sales pick up in 2015 because of its upcoming model mix.

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