Dometic CEO Says Deliveries Will Ramp Up

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Dometic President and CEO Juan Vargues sounded an optimistic tone talking about business prospects for the supplier.

Vargues said the company expected to ramp up deliveries, particularly on cooling components.

“During the second half of the quarter, we started to deliver on the previously communicated contracts for cooling compartments with automotive customers in Americas and we expect a further ramp-up in deliveries during the coming quarters,” Vargues stated in announcing the company’s third-quarter results.

RV manufacturers have had difficulty with the supply chain delivering on products such as air conditioners as demand soared over the summer.

Vargues referenced the demand, saying Dometic had a record order backlog at the end of the quarter.

“Customer demand increased sharply in June and July resulting in certain constraints in our supply chain and a subsequent effect on net sales,” he stated. “Additionally, proactive measures to contain COVID-19 cases in some of our American factories impacted net sales negatively. We will continue to increase capacity to meet the strong demand we foresee in the coming quarters.”

Dometic’s website saw traffic grow more than 70 percent year-to-date, Vargues said, noting an increase in appetite for staycation and outdoor activities driving demand for Dometic products.

“We are very proud of the strong results that the entire organization has achieved, particularly considering the challenges created by the unprecedented lockdowns we experienced worldwide in the second quarter and the business acceleration we saw in the third quarter,” Vargues stated. “While the COVID-19 pandemic continues to create uncertainty, we foresee the coming quarters to be strong considering the existing market demand, the considerably lower retail inventory levels compared to historical levels and the substantial growth in orders booked that we have experienced in recent months. As a leading outdoor company, Dometic is well positioned for continued growth and margin expansion. We are confident about the long-term positive trends in the Mobile Living Industry and remain fully committed to delivering on our strategic direction and financial targets.”

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