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Investing.com -- Dometic reported weaker-than-expected third-quarter results as softer demand in key divisions weighed on sales and margins, sending its shares tumbling more than 5%.
Net sales came in at 4.9 billion Swedish krona, about 4% below consensus cited by Jefferies, with organic revenue down 6% year-on-year.
The company’s Service & Aftermarket unit declined 4% organically, an improvement from a 12% fall in the prior quarter. OEM sales dropped 8%, though both Marine and the Americas regions posted growth for the second consecutive quarter.
By segment, Land Vehicles revenue slid 16%, while Marine grew 1% and Mobile Cooling Solutions fell 15%.
Adjusted EBITA fell 10% short of expectations at 506 million krona, with a margin of 10.4% versus 11% forecast.
"The miss was driven by Global Land Vehicles and Mobile Cooling divisions, which came in 25% and 40% behind respectively," Jefferies analyst Rizk Maidi said.
The company’s restructuring program continued, with one plant and two distribution centers closed, leading to annualised savings of 250 million Swedish krona.
Jefferies analysts said that while revenue declines are moderating, “retailers continue to be cautious as the off-season starts.” They added that “Dometic remains cautiously optimistic” as some segments show early signs of recovery, particularly in Marine and the Americas.