Monaco Coach Corp. reported its profit margin narrowed dramatically during the second quarter due to competitive wholesale market conditions.
The company reports its earnings declined 51% during the three months ended June 30 to $5.5 million while its sales revenue slipped 1% to $223.4 million.
During the first half of this year, Monaco’s earnings declined 56% to $10.7 million and its sales were down 6% to $434.7 million.
Monaco “successfully moved our remaining 2001 inventory during the second quarter,” said Marty Daley, CFO. “Our efforts to reduce this inventory resulted in further margin pressure.”
However, Monaco continued “to experience solid retail demand” in an, otherwise, soft RV market, said John Nepute, president. “Low dealer inventories, coupled with reduced interest rates, places our dealers in an excellent position to stock 2002 models.”
Monaco had a 17.7% Class A motorhome retail market share in May and a 28.7% share of the diesel engine Class A market, Nepute added.
During the second quarter, Monaco shipped 1,540 motorhomes and 855 towables RVs to its dealers. During the first half of this year, the company shipped 2,972 motorhomes and 1,719 towables to its dealers, the commpany reported.