Marine Products Corporation Reports Q2 Financial Results
ATLANTA — Marine Products Corporation, makers of Chaparral and Robalo boats, today announced its unaudited results for the quarter ended June 30, 2011.
During the period, Marine Products generated net sales of $29,098,000, an 8.1-percent decrease compared to $31,677,000 last year. The decrease in net sales was due to a 17.9-percent decrease in the number of boats sold, partially offset by a 12.4-percent increase in the average selling price per boat, according to the company. Average selling prices improved among most of the company’s product lines due to the mix of models sold during the quarter.
Gross profit for the quarter was $4,907,000, or 16.9 percent of net sales, compared to a gross profit of $6,597,000, or 20.8 percent of net sales, in the prior year. The company says that the decrease in gross profit in the second quarter of 2011 compared to the prior year was the result of lower unit sales, decreased efficiencies resulting from lower production levels and, to a lesser extent, higher materials costs.
Operating profit for the quarter decreased to $1,219,000 compared to $2,532,000 in the second quarter of last year due to lower net sales and gross profit, partially offset by lower selling, general and administrative expenses. Net income for the quarter ended June 30, 2011 was $1,229,000 compared to net income of $2,465,000 in the prior year. Diluted earnings per share for the quarter were $0.03 compared to $0.07 per share in the prior year.
Net sales for the six months ended June 30, 2011 were $56,246,000, an increase of less than one percent, compared to the first six months of 2010. Net income for the six-month period was $1,895,000 or $0.05 earnings per diluted share, compared to net income of $2,385,000, or $0.07 earnings per diluted share in the prior year.
“In response to early second quarter economic events, especially a rise in gasoline prices, Marine Products Corporation decreased production levels compared to both the first quarter of 2011 and the second quarter of 2010.,” said Richard A. Hubbell, Marine Products’ Chief Executive Officer. “We reduced production in order to manage our dealer inventory levels through the end of the retail selling season and in preparation for the new model year. We are pleased to report that our domestic dealers actually achieved higher retail sales during the quarter compared to the prior year resulting in field inventories that were lower than at the end of the first quarter of this year. These operational metrics as well as more recent indications of relatively stronger dealer demand have prompted us to begin increasing production to support sales for the 2012 model year.”
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