Dometic issued a public caution to investors Tuesday, saying its third-quarter financial results will be softer than initially anticipated.
The company said global macroeconomic conditions are negatively impacting sales. Dometic cited high interest rates and slow consumer spending patterns as causes.
“Long-term trends in the Mobile Living industry are strong,” President and CEO Juan Vargues said. “However, the current macroeconomic situation, market conditions and customer purchasing patterns have a negative impact on the business in all sales channels, which is expected to remain throughout the year.”
Dometic said third-quarter organic net sales are expected to be 15% lower than third-quarter 2023 net sales. The company’s earnings margin, before items affecting comparability, is expected to be 8% to 9%.
“Demand visibility has turned shorter than normal and the situation has worsened during the third quarter as customers are cautious building inventories as the low season approaches,” Vargues said. “In this challenging environment, we continue to drive our strategic agenda and are strengthening the sales organizations in future growth areas, such as Outdoor Standalone Products and Mobile Power Solutions.”
Dometic is continuing product innovation investments, particularly in service-intensive areas. Vargues said the supplier is adjusting capacity proactively and has lowered its full-time equivalent employee count by 1,600 in the past two years.
He said, “(We) will continue to take mitigating actions to remain agile and efficient.”
Dometic’s third-quarter financial report will be released Oct. 23.
