Monaco Coach Corp. will introduce “several new diesel-powered motorhomes” a month from now as it attempts to respond to “market pressure” that arose “during the initial weeks of the fourth quarter,” according to Chairman and CEO Kay Toolson.
The introduction of the new diesel Class A coaches at the RV industry’s National Trade Show in Louisville Nov. 27-29 is part of Monaco’s strategy of refining new products and introducing new features in an effort to continue gaining market share and resume earnings growth, Toolson said.
During the third quarter, Monaco revealed today (Oct. 30) that its earnings declined 32% to $6.6 million while its sales grew 6% to $240.8 million.
Monaco’s sales total for the three months ended Sept. 30 included revenue from its Safari and Beaver divisions, which Monaco acquired from SMC Corp. effective Aug. 2.
For the nine months ended Sept. 30, Monaco’s earnings declined 49% to $17.3 million and its sales were off 2% to $675.5 million.
“Prior to Sept. 11, the third quarter reflected a considerably healthier market for our products than in recent quarters,” Toolson said. “Following the Sept. 11 attacks, our retail activity rebounded relatively quickly. However, current economic and social climates have resulted in market pressure during the initial weeks of the fourth quarter.”
Integrating the production of Safari and Beaver units into Monaco’s factory in Coburg, Ore., put the company’s profit margins under pressure during the third quarter due to “production consolidation challenges and product development efforts,” said Marty Daley, vice president and CFO. “We expect margins to improve in the fourth quarter, although we may encounter some lingering margin pressure.”