Marine Products Corp swings to net profit
By IBI Magazine
Marine Products Corp today reported sales of US$31.7m for its second quarter ended June 30, 2010, compared to US$8.2m a year ago. Net income swung to a gain of US$2.5m compared to a net loss of US$3.8m a year ago. The maker of Chaparral, Robalo and Sunesta brands said the 287 per cent increase in sales was due to a "significant" increase in boats sold and lower retail incentive costs. But it also said the average selling price was down by 14.3 per cent. "Lean dealer inventories benefited Marine Products Corporation during the second quarter," said Richard Hubbell, CEO, in a statement. "Sales to dealers of all of our models increased in the second quarter of 2010 as compared to the prior quarter and the prior year." Hubbell said that unit sales were up 25 per cent for the quarter, while field inventories have continued to decrease. "We believe it is particularly important to maintain appropriate dealer inventories at the present time, because the retail selling environment for our products remains weak," said Hubbell. "We agree with most industry estimates that US retail boat sales will decline 10 to 20 percent in 2010 as compared to 2009." The statement said that some dealers along the Gulf Coast have reduced orders for boats because of the recent BP oil spill. Hubbell said the company would decrease production during the third quarter.
(28 July 2010)
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