Dometic said sales in its marine division grew 12 percent in the first quarter. In its debut quarter as a separate segment, the marine unit achieved approximately 25 percent earnings before interest, taxes, depreciation and amortization margin, Dometic said in a statement. The company said it plans to grow the marine business globally.
The marine segment reported operating EBITDA of SEK371 million ($37.6 million) before amortization of acquisition-related intangible assets and items affecting comparability. Improving net sales growth, pricing, cost reductions and currency effects were partially offset by rising raw material prices, freight costs, supply constraints and sales mix. The unit reported net sales of SEK1,486 million ($150 million).
“Supported by an underlying strong end-user demand for outdoor activities, we are optimistic about the long-term trends in the mobile living industry,” president and CEO Juan Vargues said in the statement. “Our order backlog remains strong, and retail inventory levels remain below historical levels across several vertical end markets.
“However, the current macroeconomic situation brings uncertainty, and it is difficult to predict how geopolitical developments and increased inflation will impact demand. While paying close attention to the short-term market development, we will continue to implement our strategic agenda to deliver on our targets.”
Dometic acquired Treeline Capital during the recent quarter, and the company said that enhances its overall product offering and distribution in mobile power products for the marine service and aftermarket.
At the same time, Dometic said it continues a cost restructuring. For example, in March the company announced that it will move a manufacturing operation from Elkhart, Ind., to other locations in the Americas.
