Marine Products Corporation net sales were down 36% in the last 12 months, primarily due to a 40% decrease in the number of boats sold during the quarter.
Net income was down 67% year-over-year to $3.4 million and gross profit was $9.2 million, down 52%.
The organisation says the Results reflected continued weakness in dealer ordering patterns given soft consumer demand.
“As we approach the end of the year, our industry remains challenged by continued soft consumer demand and tepid dealer order flow,” stated Ben Palmer, Marine Products’ president and CEO.
“Our dealer inventories are at reasonable levels, lower versus the year-ago quarter as well as sequentially versus the second quarter of 2024, as we have scaled down production to allow the channel to de-stock.”
As we approach the end of the year, our industry remains challenged by continued soft consumer demand and tepid dealer order flow.
Ben Palmer
And he said the organisation is continuing to monitor the costs associated with the recent hurricanes that have affected the Southeastern states.
In addition, a decrease in interest rates is a first step towards providing some optimism in the market.
“During this period of soft demand, we remain focused on operations, margins, quality and innovation,” added Ben. “With no debt, strong cash generation, and well over $50 million in cash at the end of the third quarter, we are well positioned to navigate the current headwinds.”
The company had a decline in its gross margin reflecting lower sales volumes and associated manufacturing cost inefficiencies.
In addition, the reinstituting of retail incentive programs had an effect.
Production schedules and labour costs have been adjusted to align with current demand more closely.
