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Despite a dip in the fourth quarter, Monaco Coach Corp. reported a record $1.4 billion in revenue for 2004, which generated a profit of $36.7 million, representing a 65.3% increase over 2003.
Revenue in the fourth quarter increased 1% compared to 2003, but net income decreased to $5.4 million versus $11 million in the fourth quarter of 2003.
“Despite the slowdown of the markets in the second half of the year due to the hurricanes in the Southeast and the hesitation by consumers leading up to the election, 2004’s record revenues and unit sales confirm the broadening acceptance of the full range of Monaco Coach products by the retail customer and our dealer partners,” said Kay Toolson, chairman and CEO.
Shipments for the Coburg, Ore., motorhome and towable manufacturer reached 12,820 units for the year, an increase of 32.9% over 2003.
Motorhome shipments led the way with 8,199 units, a 16.3% increase for the year, while Monaco sold 4,651 towable units, up 78.2% compared to 2003.
Monaco President John Nepute reported that the company adjusted production in the fourth quarter in response to growing dealer inventories and a softness in the motorhome market.
“We reduced production in the fourth quarter in an attempt to match retail demand and make sure dealer inventories remained normal,” Nepute said.
In releasing Monaco’s 2004 financial results, the company said it has continued to curtail production into the first quarter of 2005, already slicing eight days from a planned 65-day production schedule.
CFO Marty Daley said that for 2005 Monaco expects to grow at a rate better than the industry as a whole. University of Michigan economist Richard Curtin has predicted a 3.3% decline in shipments this year.
“We believe that Monaco should be able to grow at a faster rate than the overall market, and we expect to see flat to slightly improving unit sales in 2005,” Daley said.