ATLANTA – Marine Products Corporation posted a narrow net loss of $80,000 for its first quarter compared to a net loss of $2,486,000 in the prior year. The quarter ended March 31.
In its quarterly report, the company said it generated net sales of $24,493,000, an 84.9 percent increase compared to $13,250,000 last year. The increase in net sales was due primarily to a 73.9 percent increase in the number of boats sold and partially offset by a 2.9 percent decrease in the average selling price per boat.
“During the first quarter Marine Products Corporation benefited from lean dealer inventories, a relatively strong winter boat show and retail selling season, and our industry position as a quality and innovation leader,” Richard A. Hubbell, Marine Products CEO, said in the report. “Sales of all of our models increased in the first quarter of 2010 compared to both the first and fourth quarters of last year. In order to meet our higher production schedules, we increased our production workforce by more than 30 percent during the quarter. Our higher level of production not only assisted us in meeting increased demand, but also created production efficiencies and cost leverage that benefited the current quarter.”
Gross profit for the quarter was $3,445,000 compared to a gross loss of $614,000 in the prior year. Operating loss for the quarter was $403,000 compared to an operating loss of $4,757,000 in the first quarter of last year.
“Our field inventories were approximately 45 percent lower than at this time in 2009, in spite of our increased production. This indicator gives us confidence in the strength and positioning of our dealer network. We are beginning to see a favorable impact from new dealers who have joined us within the past year, and the market continues to receive our new models favorably,” Hubbell said.
Marine Products manufactures fiberglass boats under two brand names: sterndrive and inboard pleasure boats by Chaparral and outboard sport fishing boats by Robalo.
Click here to read the complete Marine Products Corporation Quarterly Report.