Business news : Marine Products Corp ( Chaparral, Robalo ) parent reports strong Q1 sales

Marine Products Corp. saw a 17 percent increase in sales during the first quarter of the year as sales of larger models picked up.

For the quarter ending March 31, Marine Products – which produces the Chaparral and Robalo brands – generated net sales of $44.3 million, up from $37.8 million in 2012. The number of boats sold increased 12.3 percent, while the average selling price per boat increased 2.9 percent.

The company said sales increased on its larger models, particularly the Chaparral 257 and 277 SSX, driving up the average sales price. That’s in stark contrast to the 2012 Q4 results, when the average selling price dropped 8.6 percent from the fourth quarter of 2011, while unit sales increased 31.5 percent. That was due largely to an increase in the sales of the value-price Chaparral H20 series and Robalo sportfishing boats.

“Our value-priced Chaparral and Robalo models continue to appeal to our dealers and retail customers,” Marine Products Corp. CEO Richard A. Hubbell said in a statement. “During the first quarter of 2013, however, the majority of our increase in unit sales compared to the prior year was due to improvements in unit sales of the larger models. Sales of our value-priced Robalo sport fishing boats increased significantly as well.”

The company reported that gross profit for the quarter was $7,112,000, or 16.1 percent of net sales, compared to gross profit of $6,996,000, or 18.5 percent of net sales, in 2012. As a percentage of net sales, gross profit decreased due to increased employment costs and the lower margins generated from our value-priced boats, the sales of which increased during the quarter compared to the prior year, the company said. Operating profit for the quarter decreased by 28.3 percent to $1,472,000 compared to $2,053,000 in the first quarter of last year due to higher selling, general and administrative expenses.

Source Marine Products Corp