Dometic yesterday announced a global restructuring plan that includes eliminating some business lines, and closing two manufacturing sites and five distribution centers. The company said it will also consider divestment opportunities and continue cost-cutting programs.
The moves will reduce costs and improve profitability, according to a company statement.
“The current macroeconomic situation and market conditions, including high interest rates, lower consumer spending and customer purchasing patterns, are having a negative impact on our financial performance,” Dometic president and CEO Juan Vargues said in the statement. “To enable us to move with speed in execution, we are outlining our path to strengthen profitability and to release resources for continued investments to drive profitable growth and value creation in our strategic growth areas.”
Dometic estimates that the structural cost reductions and discontinued businesses will have an annual positive impact on EBITA of SEK$750 million ($68.15 million) when fully implemented. Implementation is expected within 24 months, with a gradual effect from the first quarter of 2025.
