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Monaco Coach Corp. reported record third quarter sales of $358.9 million and an almost 19% increase in net earnings, while sales revenue for the first nine months topped the $1 billion mark.
The Coburg, Ore. company also reported it had lowered production rates to avoid the accumulation of excess inventories.
“Competition in the motorhome industry remains very intense,” said Kay Toolson, chairman and CEO of the firm, which is the leading producer of diesel-pusher Class A motorhomes.
“Discounting and retail incentives were used to help discourage a build-up of finished goods inventory and support our dealer partners in retailing their inventory,” added President John Nepute. “The company has reduced production and run rates to reflect the softer retail market and weakness in specific brands. The reduction should lessen our reliance on discounts and incentives.”
As a result of the lower production rates, Monaco’s fourth-quarter sales revenue should end up in the $300 million to $310 million range, according to Marty Daley, vice president and CFO.
Concerning the third quarter, Monaco earned $7.4 million, an 18.8% increase over the $6.3 million it earned during the July-through-September portion of 2003.
During the first nine months of this year, Monaco’s net earnings almost tripled to $31.3 million, compared with $11.2 million earned during the same portion of last year.
The New York Stock Exchange-listed company’s third quarter sales increased 18.4% to a record $358.9 million, compared with $303.2 million a year earlier.
During the first nine months of this year, Monaco’s sales revenue increased 26.8% to $1.07 billion, compared with $845.1 million inthe same portion of 2003.
Monaco shipped 2,110 diesel and gas Class A’s and Class C motorhomes to its dealers during the July-through-September period, along with 1,254 towable RVs.
For the first nine months of this year, Monaco shipped 6,377 motorhomes and 3,470 towables to its dealer body.