Garmin profit rises as revenue falls

Garmin Ltd. on Wednesday reported a higher third-quarter profit, but revenue fell short because of global economic conditions and the competitive environment for navigation devices.

The company, whose operating headquarters is in Olathe, earned $119.3 million for the three months that ended Sept. 26. That was up from a loss of $146.8 million in the same period last year.

However, total sales for the quarter fell 4 percent to $679.6 million. Garmin said revenue was sliced about $52 million in the third quarter by the “relative strength” of the dollar compared to foreign currencies.

Garmin, which sells an extensive line of products that use satellite technology, signaled earlier this month that its third-quarter results would be weaker than expected.

The company reported quarterly sales declines in its auto, outdoor and aviation markets. Sales of fitness products climbed 23 percent, while revenue from marine-related products was flat.

Garmin has been expanding its product line in recent years to rely less heavily on personal navigation devices for the auto industry. For the third quarter, Garmin said fitness, outdoor, aviation and marine business accounted for 61 percent of total revenue.

Despite the third-quarter performance, Garmin president and chief executive Cliff Pemble said the company has a “solid plan to improve our results over the long term … including compelling new products, some of which have already launched in the fourth quarter, with many more to come in 2016.”

In terms of guidance, Garmin said it expects revenue of about $2.8 billion in 2015, down from the previous expectation of $2.9 billion.

Shares in Garmin closed at $35.13, up 34 cents.

This story was originally published October 28, 2015 at 11:46 AM with the headline "Garmin profit rises as revenue falls."