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Monaco Coach Corp. reports its first quarter net earnings soared 86% higher and its sales revenue climbed 39%.
The New York Stock Exchange-listed company earned $9.7 million during the three months ended March 30, compared with $5.2 million earned during the first three months of 2001.
Monaco’s first quarter sales revenue totaled $293.6 million, compared with $211.2 million a year earlier.
The Coburg, Ore.-based company built a total of 2,692 motorhomes and towable RVs during the first three months of this year, a 17% increase from the 2,296 units it built during the first quarter of last year. Among the 2,692 units were 1,923 motorhomes and 769 towables.
“Our dealers are well positioned in terms of inventory and growing retail demand,” said Kay Toolson, chairman and CEO. “They have responded with increased product orders and our order backlog remains strong.”
President John Nepute added, “The improved sales climate has contributed to progress we are making with our recently acquired Safari and Beaver brands. We’ve been successful in signing new dealers to represent the brands and we’re focused on providing all of our dealers with competitive, high quality products.”
The effort to blend production of the Safari and Beaver brands, which Monaco acquired last summer, into its Oregon operations is continuing, and Nepute said, “We’re making good progress towards this integration.”
The Safari/Beaver integration continued to put pressure on Monaco’s profit margin, although its gross margin did expand to 12.9% in the first quarter, compared with 12.1% during the fourth quarter of last year, said Marty Daley, vice president and CFO. The Safari/Beaver consolidation effort and annual model year change activities will put pressure on Monaco’s gross profit margin in the second quarter, although Daley sees “improvement in our margins throughout the year.”
This year’s higher production volumes will make Monaco’s factories operate more efficiently, and will allow the company to “enjoy gross margin recovery,” Daley added.