Marine Products Corp. Reports Q4, 2010 Results

Marine Products Corporation, manufacturer of Chaparral and Robalo fibreglass boats, released its unaudited results for the quarter and year ended December 31, 2010.

For the quarter ended December 31, 2010, the company generated net sales of $20,814,000, an increase of 89.4 percent compared to the previous year. The growth is attributed to a significant increase in the number of boats sold, along with a slight increase in the average gross selling price per boat. Gross profit for the quarter was $3,595,000, or 17.3 percent of net sales, compared to a gross loss of $1,390,000 in the prior year, while operating profit for the quarter was reported as $414,000 compared to a loss of $4,756,000 in Q4 2009.

Net sales for the twelve months ended December 31, 2010 were reported as  $101,011,000, a 156.1 percent year-over-year increase, while net was reported as $3,853,000, compared to net loss of $10,693,000 in the prior year.

“In the fourth quarter of 2010, we continued to experience the ability and willingness of our dealer network to build inventory levels to meet anticipated customer demand for the 2011 retail selling season,” said Marine Products' CEO, Richard A. Hubbell. “As a result we were able to produce and sell a higher number of units and plan future production with more certainty than during the fourth quarter of 2009. In addition, we recorded much lower retail incentive costs than in 2009 due to the renewed financial strength of our dealer network and their appropriate inventory levels relative to current and anticipated customer demand.

“We are guardedly optimistic about the upcoming retail selling season,” continued Hubbell. “Attendance at the early winter boat shows has been slightly better than last year, and dealers and customers continue to be impressed with the benefits that our financial strength and management expertise present. Also, our dealers are very enthusiastic about several of our new models for the 2011 model year.”