Marine Products Corporation Announces 2009 Year End Results

Marine Products Corporation, Atlanta, GA-based manufacturer of Chaparral and Robalo, announced its unaudited results for the year ended December 31, 2009.

Net sales for the 12 months ended December 31, 2009 were reported as $48,471,000, a 72.4 percent decrease compared to the previous year. Net loss for the 12-month period was $10,693,000, compared to net income of $7,586,000 in the prior year (all figures $US).

For the quarter ended December 31, 2009, the company reported net sales of $13,313,000, a 41.5 percent decrease compared to $22,764,000 last year. The decrease in net sales was due to a 37.8 percent decrease in the number of boats sold and a 5.8 percent decrease in the average selling price per boat. Units sold decreased among all of our product lines

Richard A. Hubbell, Marine Products' Chief Executive Officer stated, “During the third quarter of 2009 we introduced our 2010 models to the market, and provided support to our dealers as they continue with their successful efforts to liquidate old inventory in preparation to sell updated products manufactured during the current model year. The winter boat show season has begun, and early indications are that attendance and sales are similar to or slightly higher than last year. Also, the availability of floorplan financing, the lack of which was a significant impediment during the boat show season in 2009, has improved for our financially stable dealers.

“At the end of 2009, our field inventories were slightly more than one-third of the prior year's field inventories. We do not believe that there will be any additional impact on our financial results of further financial support of our dealer network to liquidate prior year inventories. In this environment of historically low dealer inventories, we are uniquely positioned to meet dealer and customer demand for new products and adjust production appropriately. By the end of the first quarter, our unit production will be almost 100 percent higher than in the third and fourth quarters of 2009 to satisfy current dealer demand for 2010 models. There are many signs confirming that this cycle has bottomed, and we will leverage our financial strength, our position with our dealers, and our fleet of updated models to serve our dealers and customers during 2010,” concluded Hubbell.