Marine Products Corporation Reports Third Quarter 2010 Financial Results

Marine Products Corporation, parent company of Chaparral and Robalo fibreglass boats, announced positive financial results for the quarter ended September 30. The company reported net sales of $24,027,000 compared to $7,011,000 in 2009 (all figures $US).

The increase in net sales was attributed to a significant increase in the number of boats sold and lower retail incentive costs as a percentage of net sales compared to the prior year, partially offset by a 4.9 percent decrease in the average selling price per boat. Prior-year net sales included the recognition of a significant amount of estimated incentive costs related to boats sold in prior periods. The decrease in average selling price per boat was principally due to a shift in model mix in the company's SSi Wide Tech and Robalo product lines. 

Gross profit for the quarter was reported at $4,076,000, or 17.0 percent of net sales, compared to a gross loss of $585,000 in the prior year. The increase in gross profit in the third quarter of 2010 resulted from higher sales, lower retail incentive costs as a percentage of net sales, and increased efficiencies due to higher production levels. Operating profit for the quarter was $1,177,000 compared to an operating loss of $3,340,000 in the third quarter of last year. 

“During the third quarter of 2010, Marine Products Corporation benefited from appropriately lower dealer inventories and improved dealer order levels,” said Richard A. Hubbell, Marine Products' Chief Executive Officer. “Unit sales to dealers increased significantly across all of our product lines compared to the third quarter of 2009, when our production and sales were very low in order to allow our dealers to sell their existing inventory. Although our overall average selling prices declined during the quarter, we generated higher average selling prices in our Signature Cruiser and Sunesta Wide Tech product lines, as we introduced two larger models last quarter which our dealers received enthusiastically.”