Marine Products Corporation sales fell by 40% to $69.5 million in the second quarter of 2024.
The manufacturer of Chaparral and Robalo boats had a net income of $5.6 million, down 61% year-over-year, while the net income margin decreased to 8%.
Gross profit was $13.2 million, down 54% and gross margin was 18.9%.
The results reflect continued weakness in dealer ordering patterns and soft consumer demand, said Ben Palmer, Marine Products’ president and CEO.
“We continue to navigate a challenging environment impacted by high inventory levels in the dealer channel relative to current demand,” he explained. “Interest rates also remain relatively high, resulting in elevated floorplan carrying costs for our dealers and financing costs for consumers.”
Aggressive promotions
And he said the company continued to support dealers with aggressive promotions in a collaborative effort to spur sales and reduce channel inventories.
Operationally, the company has decreased its production to align with dealer demand, implementing reduced work schedules and taking other cost reduction measures.
But Ben added that despite uncertainties, Marine Products Corporation remained enthusiastic about its 2025 model year launch.
The new line-up will be shown to dealers in August.
And he said year-over-year comparisons will remain soft in the short term as the industry continues to normalise following high post-pandemic demand and dealers’ unwinding of channel inventory.
