Monaco “Bullish” on Diesel Market
Monaco Coach Corp. remains “bullish” on the diesel engine motorhome business and “our strongest order segment continues to be the mid-to-high-end diesel market,” said John Nepute, president of the Coburg, Ore.-based company.
“We have ramped-up production on all of our manufacturing lines and we continue to see strengthening of our order picture,” Nepute said, during a conference call with investment analysts last week. “We continue to be optimistic about the second half of ‘02,”
Monaco’s total sales revenue increased 40% during the second quarter to $313.7 million and a similar total sales volume is expected for the third quarter, said Marty Daley, CFO.
The company’s order backlog currently is a Monaco record $300 million and the company is able to maintain retail sales, factory production and profit margins “without matching certain competitors’ discounts,” said Kay Toolson, chairman and CEO.
During the second quarter, Monaco’s diesel motorhome sales revenue increased 36%, while its gasoline engine motorhome sales were up 75% and its towable RV revenue climbed 16% higher, Daley said.
Diesel motorhomes accounted for 77% of Monaco’s total revenue during the second quarter. Gas motorhomes accounted for 14% and towables 9% of the firm’s total revenue during the April-through-June period.
Industrywide, diesel motorhomes accounted for 40% of all Class A motorhome units sold year-to-date through the end of May, and diesel coach sales were up 2% during the first five months of this year. However, Monaco’s were up 18%, in terms of units, and the company had a 33.2% share of the retail market for diesel pushers during the first five months of the year, Nepute added.
Sales of Monaco- and Holiday Rambler-brand diesel pushers were flat during the first five months of this year, but the Beaver and Safari brands of highline motorcoaches added $47 million to Monaco’s total second quarter sales revenue, Daley said.