REPORT ON THE THIRD QUARTER 2017
- Net sales for the quarter totaled SEK 3,399 million (3,142); an increase of 8%, of which 11% was organic growth.
- Operating profit (EBIT) before items affecting comparability amounted to SEK 482 million (426), representing a margin of 14.2% (13.6%), including SEK 12 million relating to US class action legal costs.
- Operating profit (EBIT) amounted to SEK 648 million (426).
- Cash flow for the period totaled SEK 610 million (423). Operating cash flow totaled SEK 667 million (535).
- Profit for the second quarter was SEK 448 million (311).
- Earnings per share: SEK 1.51 (1.05).
GROWTH AND MARGIN IMPROVEMENT
“Demand for Dometic’s products remained high in all regions, with strong sales in the quarter. Total growth was 8 percent, of which 11 percent was organic. The EBIT margin improved compared to the previous year, despite some headwind from product mix, currency effects and raw material prices. During the quarter, we suffered from production disruptions caused by Hurricane Irma in Florida and the typhoon in China, with a total estimated effect on operating profit of about SEK 10 million.
Americas concluded yet a good quarter with organic growth of 15 percent. The favorable market conditions remained intact and demand was particularly high within the RVOEM business. EMEA’s sales growth was mainly driven by our OEM businesses. Sales in APAC were strong, with organic growth of 15 percent.
We participated in a large number of events during the quarter. In August, the world’s largest RV trade fair in Düsseldorf saw a record number of visitors, of which about 30 percent were first time visitors. In September, the RV Open House week in Elkhart generated strong traction among OEMs, distributors and suppliers.
We continue to have a high pace in innovation, and our strong financial position with historically low leverage of 1.3x means that we are well positioned to pursue strategic acquisitions. With a well-defined set of initiatives to drive profitability, we remain committed to our financial targets and the outlook for our businesses remains unchanged.”
Roger Johansson, President and CEO
PRESENTATION OF THE REPORT
Analysts and media are invited to participate in a telephone conference at 10.00 (CEST) October 24, 2017, during which President and CEO, Roger Johansson and CFO, Per-Arne Blomquist, will present the report and answer questions. To participate in the webcast/telephone conference, please dial in five minutes prior to the start of the conference call:
|Sweden:||+ 46 (0)8 566 426 69|
|UK:||+44 (0)20 3008 9807|
|US:||+1 855 831 5948|
Webcast URL and presentation are available at www.dometic.com.
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 08:00 CET on October 24, 2017
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.