Sweden’s Dometic Group reported net sales of SEK 1.96 billion (€220.5m) for its third quarter ended September 2013, up three per cent compared to the same period a year ago. Operating profits (earnings before interest and tax) were up four per cent to SEK 241 million (€27.1m) in the third quarter, from SEK 232 million (€26.1m) a year ago.
“After eight consecutive quarters of decline in EBIT, we are pleased to see a year over year improvement in our results,” said Dometic’s president and CEO Roger Johansson. “However, the European markets remain uncertain, especially the recreational vehicle sector which is heading for an all-time low in 2013,” he added.
Johansson attributed improved operating profits to an upturn in volumes and the continued impact of cost savings. On a regional basis he noted that North America maintained momentum, while Asia-Pacific continued to show growth and Europe generated a modest sales increase overall.
In the marine segment, Dometic said the US market for boats above 15 feet grew during the third quarter, while ‘the company’s sweet spot of 30-60 feet’ was beginning to stabilize and return to modest growth. Although OEM business in America was down for the period as a whole, this was more than offset by higher aftermarket sales.
In Europe, Domestic said its marine OEM business grew during the third quarter, mainly in the UK and Spain, along with aftermarket sales which were boosted across the region by the late summer weather.
Dometic’s marine product sales account for approximately 10 per cent of total Group sales which came to SEK 7.9 billion (€ 923m) for the 2012 financial year. The company’s marine product line up includes air conditioning and sanitation systems, refrigerators, stoves, battery chargers, galley and other comfort equipment.
In June of this year, the Dometic Group announced that it had renegotiated the terms of its debt with senior lenders. At the same time, the company’s private equity owners, EQT Partners, said it would make an additional investment in Dometic of up to SEK 400 million (€45m). An initial injection of SEK 275 million was made during the third quarter and another contribution of SEK 125 million was made at the start of the fourth quarter. The company’s total interest bearing debt was SEK 7.67 billion (€872m) as of 30 September.