Dometic’s predictions of a soft fiscal third quarter proved accurate. In September, the supplier anticipated market conditions would weaken its financial performance.
According to Dometic President and CEO Juan Vargues, the company reduced its workforce by the equivalent of 3,000 full-time employees over the past three years to improve efficiency. Now the supplier will implement a restructuring program, with details to be released before reporting fourth-quarter financial results.
“Improvement activities will include cost reductions as well as an intensified focus to divest or exit non-strategic parts of our existing product portfolio,” Vargues said. “This will support margin expansion and release resources to invest and drive profitable growth and value creation in our strategic structural growth areas.”
The company’s net sales decreased by 17% compared with the 2023 third quarter. The Land Vehicles Americas segment, which includes North American RV sales, bore the brunt of the sales declines. Segment sales overall declined 26% from the third quarter of 2023 while operating profits fell 8.2% from the third quarter of 2023.
RV and boat use remains high; however, Dometic said many consumers are focusing on essential repairs and deferring upgrades.
Despite the soft numbers, Vargues said, “We continue to keep our strong market-leading position, and with several new products ramping up, and more products in the pipeline, we will be in a strong position when the high season starts in 2025.”
Dometic reported weak global OEM demand during the quarter, driven by destocking.
“Long-term trends in Mobile Living are strong as a growing number of consumers are enjoying the outdoors globally,” Vargues said. “However, we expect the current challenging market conditions to remain throughout the year over a seasonally weak fourth quarter. In a market where the visibility is shorter than normal, we will stay proactive and continue to relentlessly drive our strategic agenda to deliver on our targets.”
