Marine Products Corp. to focus on high-demand models for 2020

MarineProducts Corp Chaparral PlantOverhead_2018

Marine Products Corp., the parent of the Chaparral and Robalo brands, today reported sales of $72.2 million for its third quarter, which ended Sept. 30, compared to $72 million for the same period a year earlier. Net income rose 9.7 percent to $7.85 million for the quarter.

The company said in a statement that average gross selling prices increased by 5.8 percent, offset by a 6.1 percent decrease in the number of units sold.

CEO Richard A. Hubbell cited “continued secular weakness” in the sterndrive market for the lower unit sales. They were offset by higher sales of larger outboard models from Chaparral and Robalo. He added that the company’s dealer inventory channels are “well-positioned with newer inventory.”

“For the upcoming model year, we are offering a more focused model lineup, which is targeted toward specific market categories in which we believe demand to be strongest,” Hubbell said.

Chaparral held the second-highest sterndrive market share in its size category through June (the latest available data), and Robalo has the second-highest market share in its category. “The combination of Robalo and Chaparral's outboard boats held 6.8 percent of their market for this period, the highest market share in that category,” according to the statement.

The company ended the third quarter with $23 million in cash, a slight increase compared to $22.3 million for the same quarter a year ago.