Dometic is to carry out a global restructuring program in a bid to increase its margins alongside releasing resources.
As part of the restructure, Dometic is to close manufacturing sites impacting around 500 employees.
The company will also explore divestment opportunities and/or look to discontinue low-margin businesses and/or areas where synergies are low or non-existing with the rest of the portfolio.
Among the businesses Dometic is looking to discontinue are large compressor refrigerators for recreational vehicles as well as hot and cooking and windows product categories in the Land Vehicles Americas segment.
In addition, the generator product category in the Global Ventures segment and selected low-margin camping equipment product categories in the Land Vehicles EMEA segment could be discontinued.
Our focus on efficiency improvements has remained high.
Juan Vargues
Dometic has begun initial discussions with potential buyers for some of these businesses.
Dometic will also continue to drive structural cost reductions, and is starting a company-wide cost reduction program.
This includes a planned closure of two manufacturing sites and five distribution centers as well as what Dometic terms rightsizing of resources in manufacturing, supply and support functions.
The company says that focusing its portfolio on fewer businesses will enable it to release resources and increase investments to drive profitable growth and value creation in strategic growth areas.
Juan Vargues, president and CEO, says: “Since we announced our strategy in 2019, we have taken several major steps on our transformation journey.
“We have almost doubled the size of the company and have achieved a sales mix that is significantly more diversified and resilient. We have increased our investments in R&D.
Product innovation
“Our product innovation index is growing, and we have several new exciting products on the market, including a new range of active cooling boxes.
“At the same time our focus on efficiency improvements has remained high and today we are 3,200 fewer FTEs than three years ago.”
However he said that current macroeconomic situation and market conditions are having a negative impact on Dometic’s financial performance.
Juan added: “Long-term trends in Mobile Living are strong as a growing number of consumers are enjoying the outdoors globally.
“With these measures outlined above, we are positioning Dometic to continue to benefit from these trends and, more importantly, to deliver a return on capital employed that will create value for our shareholders.”
