PHOTO COURTESY ATLANTIC MARINEMarine Products Corp., the parent of Chaparral and Robalo, reported second quarter net sales of $69.5 million, a 40% decrease year-over-year. Net income was $5.6 million, down 61% compared with the prior-year quarter.
“We continue to navigate a challenging environment impacted by high inventory levels in the dealer channel relative to current demand,” president and CEO Ben M. Palmer said in a statement. “Interest rates also remain relatively high, resulting in elevated floorplan carrying costs for our dealers and financing costs for consumers. We continue to support our dealers with aggressive promotions and extending these programs in a collaborative effort to spur sales and reduce channel inventories. Operationally, we have continued to right-size our production to align with dealer demand, implementing reduced work schedules and taking other cost-reduction measures.”
The decrease in net sales was attributed to a 41% decline in the number of boats sold during the quarter. Price/mix was up 1% driven by higher selling prices, and sales continued to be impacted by dealer efforts to reduce inventories.
Gross profit was $13.2 million, down 54% year-over-year, and gross margin was down 18.9%. The decline reflects lower sales volumes and related manufacturing cost inefficiencies. Production schedules and labor costs have been adjusted to align with demand.
Selling, general and administrative expenses were $7.4 million, down 39%. The decrease was due to costs that vary with sales and profitability, including incentive compensation, sales commissions and warranty expenses.
