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February 21, 2006

Marine Products' Profits up 10.4 Percent

Marine Products, maker of Chaparral and Robalo boats, reports profits of $26.2 million in 2005, a 10.4-percent increase.

Marine Products, maker of Chaparral and Robalo boats, reports profits of $26.2 million in 2005, a 10.4-percent increase.

Net income was up from $23.7 million in 2004, with diluted earnings per share rising to 65 cents, compared to 58 cents per share last year. Net sales for the year were $272 million, a 7.8-percent increase compared to 2004.

"We decreased our production volumes during the fourth quarter in response to concerns about retail sales arising from the hurricanes, rising fuel prices and the potential of declining consumer confidence," said CEO Richard A. Hubbell, in a statement. "We accomplished this during the fourth quarter, resulting in improved dealer inventory levels."

For the fourth quarter ended Dec. 31, the company reports a 23.3-percent drop in profits to $4.2 million, compared to $5.5 million the previous year. The company blames the decline on a lower operating income, partially offset by a lower tax rate. Sales were up 7.8 percent, however, to $272 million.

Sales during the winter boat show season, an important indicator for the selling season during 2006, have been favorable, according to Hubbell. The company has since boosted production to slightly above fourth-quarter levels to meet demand. Hubbell said the company would continue to monitor consumer confidence, fuel prices and other indicators, and will adjust production to maintain dealer inventories and backlog at appropriate levels.