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<SEC-DOCUMENT>0000891092-06-002052.txt : 20060726
<SEC-HEADER>0000891092-06-002052.hdr.sgml : 20060726
<ACCEPTANCE-DATETIME>20060726073648
ACCESSION NUMBER:		0000891092-06-002052
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060726
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060726
DATE AS OF CHANGE:		20060726

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MARINE PRODUCTS CORP
		CENTRAL INDEX KEY:			0001129155
		STANDARD INDUSTRIAL CLASSIFICATION:	SHIP & BOAT BUILDING & REPAIRING [3730]
		IRS NUMBER:				582572419
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-16263
		FILM NUMBER:		06980322

	BUSINESS ADDRESS:	
		STREET 1:		2170 PIEDMONT ROAD NE
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30324
		BUSINESS PHONE:		4043212140

	MAIL ADDRESS:	
		STREET 1:		2170 PIEDMONT ROAD NE
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30324
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>e24608_8k.txt
<DESCRIPTION>FORM 8-K
<TEXT>
- --------------------------------------------------------------------------------

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   ----------

                                    FORM 8-K

                                   ----------

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

         Date of Report (Date of earliest event reported): July 26, 2006

                           MARINE PRODUCTS CORPORATION
             (Exact name of registrant as specified in its charter)

                                   ----------

          Delaware                       1-16263                 58-2572419
(State or Other Jurisdiction    (Commission File Number)        (IRS Employer
      of Incorporation)                                      Identification No.)

                 2170 Piedmont Road, NE, Atlanta, Georgia 30324
               (Address of principal executive office) (zip code)

       Registrant's telephone number, including area code: (404) 321-7910

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

|_|   Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

|_|   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

|_|   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))

- --------------------------------------------------------------------------------

<PAGE>

Item 2.02  Results of Operations and Financial Condition.

On July 26, 2006, Marine Products Corporation issued a press release entitled
"Marine Products Corporation Reports 2006 Second Quarter Financial Results,"
that announced the financial results for the first quarter ended June 30, 2006.

Item 9.01  Financial Statements and Exhibits.

      (c)   Exhibits.

      Exhibit 99 - Press Release dated July 26, 2006.


                                      -2-
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Marine
Products Corporation has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.

                                     Marine Products Corporation.

Date:  July 26, 2006                 /s/ BEN M. PALMER
                                     -------------------------------------------
                                     Ben M. Palmer
                                     Vice President,
                                     Chief Financial Officer and Treasurer


                                      -3-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>e24608ex99.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
                                                                      Exhibit 99

[Logo] MARINE PRODUCTS
       Corporation

           MARINE PRODUCTS CORPORATION REPORTS SECOND QUARTER RESULTS

ATLANTA, July 26, 2006 - Marine Products Corporation (NYSE: MPX) announced its
unaudited results for the quarter ended June 30, 2006. Marine Products is a
leading manufacturer of fiberglass boats under two brand names: sterndrive and
inboard pleasure boats by Chaparral, including SSi Sportboats, Sunesta
Deckboats, and Signature Cruisers, and outboard sport fishing boats by Robalo.

For the quarter ended June 30, 2006, Marine Products generated net sales of
$71,739,000, a 7.5 percent decrease compared to $77,566,000 last year. The
decrease in net sales was due to a 22.2 percent decrease in the number of boats
sold, partially offset by a 17.2 percent increase in the average gross selling
price per boat. Most product lines experienced higher average selling prices,
due to increased focus on selling larger boats and price increases instituted
during the 2006 model year. Gross profit for the quarter was $16,136,000, or
22.5 percent of net sales, compared to $19,875,000, or 25.6 percent of net
sales, in the prior year. The reduction in gross profit as a percentage of net
sales was due to increased raw materials and component costs and production
inefficiencies due to lower unit production volumes.

Operating income for the quarter was $7,699,000, a 29.3 percent decrease
compared to the second quarter last year due to lower gross profit, partially
offset by lower selling, general and administrative expenses. Operating income
was 10.7 percent of net sales for the quarter compared to 14.0 percent of net
sales in the prior year. Selling, general and administrative expenses decreased
primarily due to a decrease in incentive compensation expense, which varies with
sales and profitability.

Net income for the quarter ended June 30, 2006 was $6,289,000, a 21.0 percent
decrease compared to $7,956,000 in the prior year. Net income decreased due to
lower operating income, partially offset by higher interest income, and a lower
income tax provision. The effective tax rate during the second quarter was 24.1
percent compared to 29.3 percent in the prior year; both periods include
adjustments to reduce tax liabilities. The adjustment in 2006 due to the
successful resolution of tax examinations increased diluted earnings per share
by $0.02. The adjustment in 2005 resulting from tax return amendments increased
diluted earnings per share by $0.01. Diluted earnings per share for the quarter
were $0.16, a 20.0 percent decrease compared to $0.20 diluted earnings per share
in the prior year.

<PAGE>

Page 2
2nd Quarter 2006 Press Release

Net sales for the six months ended June 30, 2006 were $141,696,000, a 5.6
percent decrease from the first six months of 2005. Net income for the six-month
period decreased 18.3 percent to $12,065,000 or $0.31 diluted earnings per share
compared to $14,773,000 or $0.36 diluted earnings per share in the prior year.

Richard A. Hubbell, Marine Products' Chief Executive Officer stated, "The second
quarter of 2006 continued the trend of lower retail demand that we first
experienced late in the third quarter of 2005. Higher interest rates and fuel
prices have increased the cost of owning a boat, and consumers impacted by
higher costs of ownership have reacted by delaying their purchases, especially
in the market segment that purchases smaller boats. We continue to be pleased
with our increase in average selling prices, which is principally due to a
favorable model mix, resulting from our strategy of designing and selling larger
boats.

Hubbell continued, "Our dealer inventories and order backlog are in reasonable
shape given the current sales environment. At the end of the second quarter,
field inventories were 22 percent lower than the prior year, and order backlog
in weeks of scheduled production is 35 percent higher. This is the result of
actions we took last year when we realized that demand was weakening. Our
experience has taught us to react very quickly to potential downturns in demand,
and we have done so very effectively over the past nine months.

Hubbell continued, "Our dealer conferences will be taking place within the next
several weeks, when we will meet with our dealers and show them the new models
for 2007. We are excited about our new models, and look forward to our dealers'
reactions. However, we will continue to monitor dealer and consumer demand and
take appropriate actions, as we have in the past, if we continue to see product
demand weakness in the market for our products.

Marine Products Corporation (NYSE: MPX) designs, manufactures and distributes
premium-branded Chaparral sterndrive and inboard pleasure boats and Robalo sport
fishing boats, and continues to diversify its product line through product
innovation and strategic acquisition. With premium brands, a solid capital
structure, and a strong independent dealer network, Marine Products Corporation
is prepared to capitalize on opportunities to increase its market share and to
generate superior financial performance to build long-term shareholder value.
For more information on Marine Products Corporation visit our website at
www.marineproductscorp.com.

Certain statements and information included in this press release constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements include
statements regarding our evaluation of

<PAGE>

Page 3
2nd Quarter 2006 Press Release

the status of our dealer inventories, and order backlog given the current sales
environment. These statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Marine Products Corporation to be materially different from any future results,
performance or achievements expressed or implied in such forward-looking
statements. These risks include possible decreases in the level of consumer
confidence impacting discretionary spending, increased interest rates, changes
in consumer preferences, deterioration in the quality of Marine Products'
network of independent boat dealers or availability of financing of their
inventory, and competition from other boat manufacturers and dealers. Additional
discussion of factors that could cause the actual results to differ materially
from management's projections, forecasts, estimates and expectations is
contained in Marine Products' Form 10-K, filed with the Securities and Exchange
Commission for the year ending December 31, 2005.

For information contact:

BEN M. PALMER
Chief Financial Officer
404.321.7910
irdept@marineproductscorp.com

JIM LANDERS
Corporate Finance
404.321.2162
jlanders@marineproductscorp.com

<PAGE>

Page 4
2nd Quarter 2006 Press Release

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME  (In thousands except per share data)
- -------------------------------------------------------------------------------------------------------------------
Periods ended June 30, (Unaudited)                          Second Quarter                    Six Months
- -------------------------------------------------------------------------------------------------------------------
                                                                        % BETTER                           % BETTER
                                                       2006       2005   (WORSE)        2006       2005     (WORSE)
- -------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>        <C>        <C>        <C>        <C>        <C>
Net Sales                                            $ 71,739   $ 77,566    (7.5)%    $141,696   $150,152    (5.6)%
Cost of Goods Sold                                     55,603     57,691     3.6       108,742    111,329     2.3
- -------------------------------------------------------------------------------------------------------------------
Gross Profit                                           16,136     19,875   (18.8)       32,954     38,823   (15.1)
Selling, General and Administrative Expenses            8,437      8,989     6.1         17,075     17,836    4.3
- -------------------------------------------------------------------------------------------------------------------
Operating Income                                        7,699     10,886   (29.3)       15,879     20,987   (24.3)
Interest Income                                           588        370    58.9         1,034        661    56.4
- -------------------------------------------------------------------------------------------------------------------
Income Before Income Taxes                              8,287     11,256   (26.4)       16,913     21,648   (21.9)
Income Tax Provision                                    1,998      3,300    39.5         4,848      6,875    29.5
- -------------------------------------------------------------------------------------------------------------------
NET INCOME                                           $  6,289   $  7,956   (21.0)%    $ 12,065   $ 14,773   (18.3)%
===================================================================================================================

EARNINGS PER SHARE
   Basic                                             $   0.17   $   0.21   (19.0)%    $   0.32   $   0.38   (15.8)%
                                                     ==============================================================
   Diluted                                           $   0.16   $   0.20   (20.0)%    $   0.31   $   0.36   (13.9)%
                                                     ==============================================================

AVERAGE SHARES OUTSTANDING
   Basic                                               37,414     38,520                37,361     38,561
                                                       =================                =================
   Diluted                                             38,976     40,631                39,049     40,797
                                                       =================                =================
</TABLE>


<PAGE>

Page 5
2nd Quarter 2006 Press Release

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE  SHEETS
- --------------------------------------------------------------------------------
At June 30, (Unaudited)                                        (in thousands)
- --------------------------------------------------------------------------------
                                                            2006         2005
- --------------------------------------------------------------------------------
ASSETS
Cash and cash equivalents                                $  44,165    $  41,303
Marketable securities                                          379        5,419
Accounts receivable, net                                     7,819        5,451
Inventories                                                 33,677       31,741
Income taxes receivable                                      1,157          585
Deferred income taxes                                        2,954        3,109
Prepaid expenses and other current assets                    1,636        1,310
- --------------------------------------------------------------------------------
  Total current assets                                      91,787       88,918
- --------------------------------------------------------------------------------
Property, plant and equipment, net                          17,154       17,730
Goodwill                                                     3,308        3,308
Marketable securities                                        5,850        6,048
Deferred income taxes                                        1,051          394
Other assets                                                 4,964        4,427
- --------------------------------------------------------------------------------
  Total assets                                           $ 124,114    $ 120,825
================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable                                         $   9,600    $   7,308
Accrued expenses and other liabilities                      12,880       15,342
- --------------------------------------------------------------------------------
  Total current liabilities                                 22,480       22,650
Pension liabilities                                          4,485        4,094
Other long-term liabilities                                    492        1,654
- --------------------------------------------------------------------------------
  Total liabilities                                         27,457       28,398
- --------------------------------------------------------------------------------
Common stock                                                 3,805        3,879
Capital in excess of par value                              13,467       25,729
Retained earnings                                           80,489       63,732
Accumulated other comprehensive loss                        (1,104)        (913)
- --------------------------------------------------------------------------------
  Total stockholders' equity                                96,657       92,427
- --------------------------------------------------------------------------------
  Total liabilities and stockholders' equity             $ 124,114    $ 120,825
================================================================================

Certain prior year balances have been reclassified to conform with current year
presentation.

<PAGE>

Page 6
2nd Quarter 2006 Press Release

MARINE PRODUCTS CORPORATION AND SUBSIDIARIES

- --------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, (Unaudited)                         (in thousands)
- --------------------------------------------------------------------------------
                                                             2006        2005
- --------------------------------------------------------------------------------

Operating Activities:
  Net income                                               $ 12,065    $ 14,773
  Depreciation, amortization and other non-cash charges       1,840       1,509
  Other net changes in operating activities                  (3,487)     (5,886)
- --------------------------------------------------------------------------------
   Net cash provided by operating activities                 10,418      10,396
- --------------------------------------------------------------------------------

Investing Activities:
  Capital expenditures                                         (961)       (489)
  Other investing activities                                    977      (5,142)
- --------------------------------------------------------------------------------
   Net cash provided by (used for) investing activities          16      (5,631)
- --------------------------------------------------------------------------------

Financing Activities:
  Payment of dividends                                       (3,767)     (3,082)
  Cash paid for common stock purchased and retired             (559)     (7,295)
  Other financing activities                                    455         300
- --------------------------------------------------------------------------------
   Net cash used for financing activities                    (3,871)    (10,077)
- --------------------------------------------------------------------------------

Net increase (decrease)  in cash and cash equivalents         6,563      (5,312)
Cash and cash equivalents at beginning of period             37,602      46,615
- --------------------------------------------------------------------------------
Cash and cash equivalents at end of period                 $ 44,165    $ 41,303
================================================================================
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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