Monaco Coach Corp. posted record sales revenue and shipment levels during the second quarter, the Coburg, Ore.-based firm reported today (July 28).
Monaco also earned a net profit of $11.9 million during the three months ended July 3, a sharp increase over the $582,000 it earned during the second quarter of 2003, when the company needed to lay off workers and slow product rates in order to sell off excess inventory.
Monaco’s second quarter sales revenue amounted to $357.8 million, a 33% increase over its $268.5 million in sales during the April-through-June portion of 2003. The company shipped 2,125 motorhomes and 1,222 towable RVs during the second quarter for a record 3,347 units delivered to its dealers.
During the first half of this year, Monaco’s earnings increased more than fourfold to $23.9 million, compared with $4.9 million earned during the first half of 2003. Its sales revenue grew by 31% to $712.8 million, compared with $542.2 million a year earlier.
Monaco’s shipments also increased 40% during the first half of this year to 6,483 units, compared with 4,627 units delivered to dealers a year earlier. The 6,483 units included 4,267 motorhomes and 2,216 towable RV units.
Monaco Chairman and CEO Kay Toolson added that the company wrote a record number of orders during its national dealer meeting in late June. “The positive response to our lineup of (2005) products has led to a backlog which stands in excess of $300 million,” he said.
Monaco was able to pass slightly higher materials costs on to its dealers during the second quarter although the company’s profit margins were eroded slightly by higher sales incentives intended to move 2004 model year units, said John Nepute, president.
“Since we were successful in moving virtually all of our 2004 products, we expect to reduce the amount of incentives offered and, as a result, improve gross margins,” Nepute added.
Monaco expects its third quarter sales revenue to stay in the $350 million to $360 million range and its gross margin as a percentage of sales to end up in the 12.8% to 13.2% range, said Marty Daley, vice president and CFO.