Items affecting Dometic’s result in Q4 2017
Dometic has five major one-off items affecting the result in the fourth quarter 2017. This includes the previously announced restructuring costs of SEK 61 million related to the EMEA profitability improvement program and transaction costs of SEK 58 million related to the acquisition of SeaStar Solutions. Dometic has also reached an agreement with the insurance company regarding reimbursement of costs related to the US class action complaints. The reimbursed amount for the costs incurred until year-end 2017 is SEK 28 million, which is booked in the fourth quarter. Going forward, 75 percent of costs for handling of certain parts of the US class action complaints will be reimbursed.
Due to the new US tax reform (Tax Cuts & Jobs Act), signed on December 22, 2017, the corporate tax rate in the US has decreased. This affects Dometic in two ways in the fourth quarter. A revaluation of Dometic’s deferred tax assets in the US results in a negative effect of SEK 20 million. A deferred tax liability related to the acquisition of SeaStar Solutions, completed on December 15, 2017, has been revaluated to the new tax rate, which will have a positive effect of SEK 298 million.
The one-off tax effects will not have any impact on the cash flow.
The year-end report 2017 will be published on February 8, 2018, at 08:00 CET.
FOR FURTHER INFORMATION, PLEASE CONTACT
Johan Lundin, Head of Investor Relations & Communications
Phone: +46 8 501 025 46
This information is information that Dometic Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 16:45 CET on February 2, 2018.
Dometic is a global market leader in branded solutions for mobile living in the areas of Climate, Hygiene & Sanitation and Food & Beverage. Dometic operates in the Americas, EMEA and Asia Pacific, providing products for use in recreational vehicles, trucks and premium cars, pleasure and workboats, and for a variety of other uses. Dometic offer products and solutions that enrich people’s experiences away from home, whether in a motorhome, caravan, boat or a truck. Our motivation is to create smart and reliable products with outstanding design. We operate 22 manufacturing/assembly sites in nine countries, sell our products in approximately 100 countries and manufacture approximately 85% of products sold in-house. We have a global distribution and dealer network in place to serve the aftermarket. Dometic employs approximately 6,500 people worldwide, had net sales of SEK 12.4 billion in 2016 and is headquartered in Solna, Sweden.