Marine Products Corp. (NYSE: MPX) Previews Unsightly Financials, Expects Upcoming Improvement

Marine Products Corp. (NYSE: MPX) unaudited financials came out on Wednesday providing quite a disappointment for the shareholders. The company witnessed their quarterly revenues dropping 41.5% compared to a year ago result.

Booked net sales were $13.3 million. The decrease at its core was attributable to drastically decreased boat sales (37.8% decrease) and their market price (went down an average 5.8%). Net loss has consequently more than doubled and was $2.7 million for the Q4 2009, compared to the $1.1 million loss back in 2008.

Marine’s profit margin was hit hard by 36.1% increase in SG&A costs as the company concentrated its efforts to get rid of the older model boats. With accumulated negative impact, 2009 brought a total of $10.7 million loss for the company.[BANNER]

Despite the heavily beaten financial results the company still scored some positive price action on the market. Apparently investors were mostly reacting to the company’s remarks on their new model boat availability and the beginning of winter boat season, which promises increased sales. Marine also stated they will cut the financial support for dealers and just stick with the previous year’s inventory that’s left. The decision will positively affect the SG&A costs for the upcoming quarter.

Marine’s CEO R.A. Hubbell noted there is a significant demand for the new model boats they have to offer both in the dealer and customer fields. Relating to their demand calculation the company will be increasing their unit production by more than 100% in the first quarter.

Even so, with all the positivity towards them these forward looking statements remain mainly speculations. The company’s financial position is not guaranteed to change for the better, especially considering the current uncertain economic situation.

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