Monaco Coach Corp. reported its first losing quarter after 48 straight quarters of profitability since becoming a public company, resulting in the elimination of approximately 225 non-production related jobs.
Corroborating a preliminary report issued Oct. 18, the Coburg, Ore.-based builder incurred a $6 million loss in the company’s third quarter and a 17% drop in revenues, which also impacted nine-month results.
Revenues for the nine months decreased 12.6% to $930 million from $1.06 billion last year while net income was $115,000 compared to $31.3 million.
“I am disappointed that our track record of 48 straight quarters of profitability since becoming a public company was disrupted,” said Kay Toolson, chairman and CEO. “The quarter was impacted by a variety of events including the difficult wholesale markets, and the start-up of our Franchise for the Future initiative, which we believe going forward should create a more consistent retail and wholesale demand for our products at dealer lots.
“Additionally, we feel we have made the appropriate responses in our business, including our announced reduction in workforce and additional cost saving measures.”
The RV segment reported sales of $289 million during the third quarter, down 18% from $353 million the previous year. Motorhome sales declined 28.9% to 1500 units and third quarter towable sales rose 2.6% to 1,287 units. Net sales for the RV segment in the first nine months were $905 million, a 13.7% decline from $1 billion last year.
“The motorized market has been tough across the board, but particularly in the low-end diesel and high-end gas markets,” said Mike Snell, vice president of sales and marketing.”
He added, “Over the past few quarters, we have placed an emphasis on increasing sales of our towable products, and we are pleased that our eight month retail towable units sold were up 23%, excluding the FEMA units. The market response to our lighter-weight, less expensive travel trailers and toy haulers has been excellent.”
Monaco also reported its motorhome resorts operation had performed well during the quarter as sales increased $8 million from last year.
“The motorhome resorts part of our business continues to be strong,” said Nepute. “Demand for quality RV Resorts remains robust in the Southern California and Las Vegas areas.”