Garmin reports lower revenues but higher profits

10/30/2013 9:10 PM

10/30/2013 9:10 PM

Garmin Ltd. on Wednesday reported lower quarterly revenue but higher earnings, thanks largely to its lineup of navigation products for the fitness and marine markets.

The Olathe-based company also boosted its full-year earnings per share guidance to $2.40 to $2.45 based on the strength of its third-quarter performance. The company previously projected earnings of $2.30 to $2.40 per share.

Shares in Garmin closed Wednesday at $48.27, up 20 cents, or 0.4 percent.

Garmin, which relies on satellite Global Positioning System technology, reported third-quarter revenue of $644 million. That was down from $672.4 million in the same quarter last year, but the company said the results were still stronger than expected.

Profits climbed to $187.7 million for the quarter, up from $140.3 million in 2012’s third quarter.

Cliff Pemble, Garmin’s president and chief executive, said the company’s fitness and marine segments delivered “exceptional growth” of 25 percent and 24 percent in the quarter. In addition, the company’s aviation business climbed 15 percent in the three months that ended Sept. 28.

Revenue fell 4 percent in Garmin’s outdoor product line, while its automotive segment — traditionally a key part of its business — posted a 16 percent revenue decline. The company also said it expects the auto market to decline 20 percent in 2014.

Reflecting its changing product mix, Garmin said the non-automotive segments of its business accounted for half of its quarterly revenues and grew 12 percent altogether from 2012’s third quarter.

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