CEO: Monaco Coach to slash costs

Monaco Coach Corp. (NYSE:MNC) CEO Kay Toolson said that since the RV maker does not see a quick recovery in the RV market, the firm will be taking additional steps to cut costs and lower its breakeven point to quarterly sales of between $260 million and $280 million. Monaco will lower its production rates, lower expenses and more quickly facilitate other consolidations within the company. Toolson made the comments during a Wednesday afternoon conference call.

“While these steps are painful for many of our great employees, they are necessary to ensure the long-range stability and strength of our company,” Toolson said. “Additionally, we are focused on new product introductions that we feel will augment our business.”

The company is working on a new lightweight, fuel-efficient model, he said. The new model will be introduced in early 2009, the CEO said.

Toolson said the firm expects second-quarter sales slightly above first-quarter sales. However, CFO P. Martin Daley said it is difficult to forecast sales in the current economic environment.

Before Wednesday’s opening, Monaco reported a first-quarter loss of $8.5 million, or $0.28 per share, versus a profit of $1.5 million, or $0.05 per share, . . .

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