Dometic today reported sales of about $400 million (3.9 billion Swedish kroner) for its fourth quarter, a decline of 4 percent compared to the same period a year ago. Its net income for the quarter was $4.86 million (47 million SEK). The company said that restructuring costs of $8.28 million impacted its fourth-quarter sales.
Dometic CEO Juan Vargues called 2019 “an important year” for Dometic. “It was a year in which we clearly embarked on the journey of transforming as a company, started to execute on many strategic initiatives across the entire organization and raised our ambitions by establishing new financial targets,” he said in an online statement.
The company reported full-year sales in 2019 of $1.9 billion (18.5 billion SEK), compared to $1.89 billion (18.3 billion SEK) for 2018.
Its marine divisions reported lower Q4 sales but gains in full-year sales. In the Americas, Q4 marine sales fell from $96.9 million (937 million SEK) in 2018 to $92.7 (896 million SEK) for 2019, though full-year sales rose to $413.1 million from $388.6 million in 2018. In Europe, Q4 marine sales dropped to $19.2 million from $20.5 million, and for the full-year, 2019 sales rose to $87.4 million from $83.2 million in 2018.
Vargues said Dometic has shifted two production lines from China to Mexico to counter tariffs. It also consolidated one manufacturing site in the U.S. and has started to close down two sites in Europe. “A total of 10 sites and around 200 employees have been affected during the quarter,” he said. “In January, we took further action in the US, affecting one manufacturing site and around 200 employees.”
The company estimates that the restructuring efforts will add $41.4 million to its annual earnings. It will be completed by 2022.
“The execution of this program will allow us to reach our financial targets and take full advantage of the many opportunities ahead,” said Vargues. “We have increased our investments in innovation, in building the commercial organization for the new growth areas and in IT to become even more competitive in the years to come.”
Vargues said that 2020 will involve “driving improvements” across the strategy the company announced when it released its third-quarter results. “We will continue to invest in new growth opportunities and innovation, while persisting with our efforts to reduce complexity, execute on the global restructuring program and improve efficiency every day in 2020,” he said. “The many actions across the entire organization will demand full attention in order to secure successful and timely execution.”