Marine Products reports 1Q results

Publish date:
Social count:

Marine Products Corp., manufacturer of Robalo and Chaparral boats, today reported a 78.9 percent drop in net sales for the first quarter.

The results reflect "the very difficult environment in which the recreational boating industry finds itself," CEO Richard A. Hubbell said in a statement.

He said the financial crisis of the fourth quarter caused consumers to halt virtually all large discretionary spending. Marine Products' net sales fell to $13.8 million in the first quarter, which ended March 31, compared to $65.5 million in the year-ago quarter.

The company reported a net loss of $2.5 million, or 7 cents per diluted share, compared to net income of $4.1 million, or 11 cents per diluted share, in the prior year. The net loss in the 2009 quarter was due to an operating loss and lower interest income, partially offset by an income tax benefit.

Hubbell said the company worked closely with its dealers throughout the first quarter to manage their inventory levels and monitor their financial conditions. He noted that dealer inventories at the end of the quarter were about 11 percent lower than at the end of 2008 and 35 percent lower than the same time last year.

However, based on weak winter boat show results and other indicators from dealers, Hubbell said he does not expect improvement in the near term. The strategy now, he continued, is to produce "an appropriate quantity" of current-year models to meet firm demand, while continuing "a prudent amount" of new-model development for the 2010 model year.

"To support this strategy, we are producing our current-year models at a very low but steady production level," he said. "Also, we recently developed a new retail incentive program to be in effect during the 2009 spring retail selling season designed to reduce field inventory further."

To preserve its working capital through the current slump, the company's board of directors voted yesterday to suspend Marine Products' quarterly dividend.

Click here for more.

In other company news, Marine Products expanded its board to 10 and elected Larry L. Prince as a new director. Prince serves as the chairman of the Executive Committee of the Board of Directors of Genuine Parts Co.; chairman of the board from 1990 through February 2005; and CEO from 1989 through August 2004. He also serves as a director of Crawford & Co., and SunTrust Banks.

"Larry Prince is a highly experienced and very successful business leader," said R. Randall Rollins, chairman of the Marine Products board, in a statement.


MarineMax has strong second quarter

MarineMax grew revenue more than 10 percent to $270.6 million in the second quarter, prompting the company again to raise its annual expectations to $1.44 to $1.50 versus its prior expectations of $1.30 to $1.40 per-diluted-share.

Brunswick releases first quarter sales

Brunswick Corp. announced that consolidated net sales increased 7 percent in the first quarter, with the marine engine segment up 9 percent and the boat segment rising 7 percent over last year.

Flir posts first quarter results

First quarter revenue at Flir Systems Inc. grew 8 percent to $439.6 million, and organic revenue was up 13 percent, due in part to strong results in the Raymarine.

Connecticut Spring In-Water Boat Show announces exhibitors

The 3rd Annual Connecticut Spring Boat Show will be held May 4-6 at Brewer Essex Island Marina in Essex, Conn., and will feature boats from Albemarle, American Tug, Back Cove, Beneteau, Boston Whaler, Buzzards Bay, Catalina, Chris Craft, Cutwater, Dufour, Dyer, East Bay, Formula, Four Winns, Grand Banks, Hunt, Legacy, Mainship, Maxim, Meridian, MJM, Monterey, Nordic Tug, Ranger Tug, Rossiter, Sabre, San Juan, Scarab, Scout, Sea Born, Sea Ray, Shelter Island, Southport, Surfhunter, Tiara, Vanquish and more.