Monaco Coach slashes 600 jobs

[eleny]

No surprise at this news. I expect this to continue and companies to start going out of business soon along with other vacation service businesses to follow.

Portland Business Journal
Friday, April 25, 2008

"Monaco Coach Corp. on Friday announced it is cutting 600 jobs -- about 12 percent of its work force -- just three days after reporting an unexpected first quarter loss.

Monaco (NYSE: MNC), a manufacturer of high-end recreational vehicles based in Coburg, will cut 300 jobs in Oregon and another 300 from its facility in Wakarusa, Ind., said Craig Wanichek, Monaco's director of investor relations. About half of the positions are administrative, with the rest coming from production, he said.

The company has been hurt by a drop in consumer confidence and a challenging lending environment, Wanichek said. The market for new recreational vehicles will continue to be weak, he said.

"Our production levels were a little bit high compared to where the market has been and where the market is going," he said.
On Wednesday, Monaco posted an unexpected first-quarter loss of 28 cents per share and predicted further losses in the second quarter. Analysts polled by Thomson Financial had expected profits of 2 cents per share. "
http://www.bizjournals.com/portland/stories/2008/04/21/daily51.html?ana=from_rss

[glowing]

1. Its not about consumer confidence.. its about not having to dimes to

rub together..

[eleny]

2. Monaco has had some issues with safety recently

It's a deadly combination for a business. As you say - having the dimes to rub together is a huge factor.

I did see one article today about drivers crossing into Mexico to take advantage of the cheaper diesel fuel going for $2 a gallon in border towns. The article pointed out that the mileage is better but it's higher in sulphur.