Monaco Coach Corp., Coburg, Ore., announced Monday that revenues for the second quarter should total $225 million, up 13% from a year ago. However, earnings for the quarter should be below analysts’ targets due to higher dealer costs, higher interest rates and price pressures
Earnings for the period ending July 1 may fall 2 to 5 cents below Wall Street’s consensus estimate of 63 cents per share, according to the firm.
“Although retail demand for our products remains strong, as we approached the end of the model year our dealers became more reluctant to order 2000 models due to higher carrying costs related to their inventory,” said John Nepute, chief financial officer, in a prepared statement.
“As a result, we offered higher than normal incentives on remaining year 2000 units that added downward pressure to our second quarter earnings,” he said. “We are prepared to introduce our 2001 models in a few weeks and believe they will allow us to maintain the market share we have gained in the past few months.”
Monaco shares closed Friday at 12-1/2 on the New York Stock Exchange, off a year high of 30-15/16 but up from a low of 10-13/16.