Dometic’s Land Vehicles Americas segment, which includes its U.S. and Canadian RV operations, is persisting through economic challenges. While the segment numbers remained negative in the supplier’s 2024 second-quarter report, the section improved compared with 2023’s second quarter.
Although RV industry production levels remain low, Dometic President and CEO Juan Vargues said the U.S. Service & Aftermarket segment’s net sales recovered and made a positive impact on margins.
Vargues said, “Long-term trends in the Mobile Living industry are strong; however, it is difficult to predict how the current macroeconomic situation and market conditions, including delayed interest rate decreases and changed customer purchasing patterns, will affect the business in the short term.”
The supplier’s Mobile Cooling Solutions segment continues to grow. Net sales rose 1% in the segment from 2023’s second quarter. Mobile Cooling Solutions was the only one of Dometic’s six segments that reported net sales gains from a year earlier.
Vargues said, “In Mobile Cooling Solutions it is encouraging to see strong demand for our recently launched Igloo active cooling product range.”
Dometic is increasing research and development investments. The company recently released Mobile Power Solutions products, including the PLB15, a lightweight portable battery for outdoor use. Dometic also launched CFX2 electric coolers series in June.
Vargues said he anticipates a gradual recovery in the Service & Aftermarket and Distribution sales channels. He said the company expects weak OEM sales demand in the short-term.
“In a market where the visibility is shorter than normal, we will remain agile and act on the short-term market development, while continuing to relentlessly drive our strategic agenda to deliver on our targets,” Vargues said. “This includes prioritizing margin expansion and reviewing our existing product portfolio.”
