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Monaco Coach Corporation Expects 2nd Quarter Results Marginally Lower Than Expected

10 July 2000

Monaco Coach Corporation Expects Second Quarter Results Marginally Lower Than Expectations

    COBURG, Ore. - Monaco Coach Corporation today indicated that it expects to 
announce its second quarter 2000 earnings slightly below expectations.  The 
Company expects to report revenues of approximately $225 million for the period 
ending July 1, 2000, an approximate 13% increase over the same period last year.
However, earnings may fall 2-5 cents below the consensus estimate of 63 cents 
per share.

    The Company cited increased dealer operating costs associated with higher
interest rates and competitive wholesale price pressures as primary reasons.
According to Monaco Executive Vice President and Chief Financial Officer, John
Nepute, "Our efforts to move remaining 2000 model year product to our
distributors have been successful.  Although retail demand for our products
remains strong, as we approached the end of the model year our dealers became
more reluctant to order 2000 models due to higher carrying costs related to
their inventory.  As a result, we offered higher than normal incentives on
remaining year 2000 units that added downward pressure to our second quarter
earnings.  We are prepared to introduce our 2001 models in a few weeks and
believe they will allow us to maintain the market share we have gained in the
past few months."

    Headquartered in Coburg, Oregon, with additional manufacturing facilities
in Indiana, Monaco Coach Corporation is one of the nation's leading
manufacturers of recreational vehicles.  The company offers customers luxury
recreational vehicle models under the Monaco, Holiday Rambler, McKenzie and
Royale Coach brand names.