Net income up 20.7 percent for MPX

ATLANTA - Marine Products Corp. generated net sales of $72,586,000 for the first quarter ended March 31, a 17.4 percent increase compared to $61,830,000 in the first quarter of last year, the company said Wednesday.

The increase in net sales was primarily due to an 11.2 percent increase in the number of boats sold, a 5.9 percent increase in the average selling price per boat, and an increase in parts and accessories sales, the company said.

Marine Products Corp. said the increase in unit sales was highlighted by increases in the sales of Robalo sport fishing boats and Sunesta deckboats. The increase in average selling price was primarily due to sales of larger SSi Sportboats and Signature Cruisers.

Gross profit for the quarter was $18,948,000, or 26.1 percent of net sales, compared to $15,723,000, or 25.4 percent of net sales, in the prior year. The increase in gross profit as a percent of sales was the result of efficiencies from higher production volumes and a favorable model mix.

Net income for the quarter was $6,817,000, a 20.7 percent increase compared to $5,646,000 in the prior year. Net income increased due to higher operating income and increased interest income compared to the prior year. Diluted earnings per share for the quarter were $0.17, representing a 21.4 percent increase compared to $0.14 diluted earnings per share in the prior year.

"All of our lines sold well this quarter, and our overall model mix improved average selling prices as well,” Richard A. Hubbell, Marine Products' CEO, said. “The winter boat show season was strong for pleasure boat manufacturers such as Marine Products Corp., so we are continuing with high production levels that will meet demand through the remainder of the retail selling season.

"In the first quarter of 2005 we increased our production and realized efficiencies in our operations, which yielded strong sales and a higher gross margin as a percentage of net sales than in the fourth quarter of 2004 and the same period last year. At the end of the quarter, our unit backlog was lower than at this time last year due to higher production levels in the last several months compared to one year ago, and our dealer inventories were higher to support retail sales. While we are comfortable with these levels due to the strong boat show season this year, we are closely monitoring these key indicators as well as macroeconomic indicators such as consumer confidence and interest rates."

  • For more of the latest news, click here.

Leave a Reply

Your email address will not be published. Required fields are marked *