Garmin posts higher profits on lower Q3 sales
By IBI Magazine
Garmin Ltd today reported sales of US$781.2m for its third quarter ended September 26, 2009, down 10 per cent compared to US$870.3m a year ago. Its net income rose to US$215.1m compared to US$171.2m for the same period a year ago. Garmin's marine electronics sales also rose three per cent to US$45.4m compared to US$44.0m in the same quarter of 2008. "We saw steady sequential improvement in our consumer segments during the third quarter and are very pleased to return to year‐over‐year earnings per share growth in the quarter," said Dr Min Kao, chairman and CEO. "While revenues fell year‐over‐year, the rate of decline moderated at 10 per cent but our margin improvements more than offset that decline." Kao said that Garmin is gaining market share in its marine division over its competitors and is expanding its OEM business. "We were excited to recently announce our OEM relationship with Regal," he said. "Over two dozen 2010 Regal boat models will be offering Garmin electronics as standard selections on the equipment list. This relationship further validates our push into the OEM portion of the marine industry." Kao said he doesn't expect "significant growth" in the marine market until macroeconomic conditions improve, but said that year-over-year sales have stabilised. Garmin also generated US$281m of free cash flow during the third quarter, giving it a cash and marketable securities balance of just over US$1.8bn.
(4 November 2009)
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