Garmin sees overall revenue gain
In the marine segment, however, revenue decreased 8 percent to $44 million in the third quarter of 2008.
Garmin reported diluted earnings per share of 82 cents, compared to 88 cents in third quarter 2007; excluding foreign exchange, EPS was 87 cents, compared to 89 cents in the same quarter 2007.
For the year-to-date, total revenue of $2.45 billion was reported, up 25 percent from $1.96 billion in year-to-date 2007. The marine segment was flat at $171 million in year-to-date 2008.
Garmin's stock this morning was trading at $22.58 per share. Its 52-week high and low are $124.75 and $19.90.
"We are experiencing challenging macroeconomic conditions, yet Garmin's products continued to attract consumers, generating revenue growth and allowing us to expand our global leadership position in the industry during the third quarter," chairman and CEO Min Kao said in a statement.
"While most of our segments continue to grow, we are cognizant of the continued economic slowdown and business climate. As such, we are actively taking steps to manage our business appropriately. These include scaling our operations to better match current business conditions, and changes to inventory planning that will allow us to reduce inventory levels by approximately $150 million by the end of the year," he added.
Kao noted that the marine segment saw declining revenue for the second straight quarter on a year-over-year basis.
"However, we continue to focus on innovation and on delivering a full suite of products to marine OEMs, including our new GHP10 autopilot, which just recently began shipping, and the VHF radios that were announced this month," he said. "Garmin's diverse business composition allows us to endure the downturn in the boating industry while still making appropriate levels of research and development investment for the future."
Garmin anticipates overall revenue of $3.6 billion in 2008 and earnings per share of $3.78.