Dometic reported a slowdown in RV manufacturing in its second-quarter financial statement Friday. The supplier also will embark on a global restructuring expected to affect about 700 employees. Dometic has about 9,000 global employees.
“In a challenging market environment, we continued to execute on our strategy and delivered a net sales growth of 53 percent in the quarter,” President and CEO Juan Vargues said. “Retailers globally are rebalancing their inventory levels. The OEM business showed strong organic growth across all vertical end markets. The order backlog is higher than a year ago, while we have started to see declining RV OEM production data.”
The global restructuring is focused on location consolidation and “rightsizing of resources,” Vargues said. The program is expected to be completed by the end of next year.
Dometic’s Americas segment reported sales up 35% in the second quarter of 2022 from the second quarter of 2021. Climate products dominated sales in the Americas segment, accounting for 44% of sales. Food and beverage products brought in 22% of sales, followed by power applications (14%) and all other applications.
“The current macroeconomic situation brings uncertainty and is leading to a weakening demand in the short term,” Vargues said. “History shows that we are able to act fast and deliver strong financial results also in challenging times, and today we are a significantly more diversified company than before. While being proactive on short-term developments, we are optimistic about the long-term trends in the Mobile Living industry and will continue to implement our strategic agenda to deliver on our targets.”
