Dometic reported third quarter financial results this week. Net sales of SEK$4.9 billion ($519.4 million) were down 13% from the same period a year ago. Operating profit (EBITA) increased to SEK$506 million ($53.7 million), corresponding to a margin of 10.4%, up from 8.6% year-over-year. Dometic said the improvement was largely achieved due to its continued successful execution of a global restructuring program.
“The marine segment reported 1% organic growth driven both by the service-and-aftermarket and OEM sales channels, suggesting the market downturn may be bottoming out,” president and CEO Juan Vargues said in a statement. “Revenue in the service-and-aftermarket sales channel declined by 4% organically, also a notably slower rate of decline.” Retailers remain cautious, he added, maintaining low inventory levels and purchasing cautiously as they enter the off-season.
In the OEM sales channel, the marine segment reported net sales growth, while primarily recreational vehicle OEM net sales declined, resulting in an 8% decrease for the total OEM sales channel. “Generally,” Vargues said, “there was a positive tone and attendance increased at the major trade shows held in the quarter both in the U.S. and Europe.
“The development in order intake shows early signs of recovery in some of our markets,” he added. “We expect positive contributions from investments in new products, such as the award-winning Dometic Recon series of mobile cooling products and the Dometic DG3 gyro boat stabilizer. The recent interest-rate cuts in markets such as the U.S. and Australia are expected to improve consumer confidence, leading to improved market conditions.”
