Monaco Coach Corp. reported record first quarter sales and earnings, but Chairman Kay Toolson added, “The RV market is becoming more challenging.”

The company’s earnings increased 31% to $12.9 million and its sales were up 23% to $238.0 million during the three months ended April 1.

Monaco gained market share during the first quarter and it intends to continue doing so if the RV market becomes flat, Toolson said.

Monaco’s Class A motorhome retail market share was 13.5% during the first two months of this year, compared with 10.7% during the first two months of 1999, according to John Nepute, CFO. Its diesel engine motorhome retail market share was 25.3% during the first two months of this year, compared with 21.9% a year earlier.

Monaco’s wholesale unit volume increased 18.1% to 2,809 units shipped during the first quarter of this year, Nepute continued. It shipped 1,816 motorhomes and 993 towables during the first three months of this year.