Garmin reports 2Q results

Published online: Aug 04, 2011 News Trade Only Today
Viewed 218 time(s)

Garmin today reported a drop in revenue for the second quarter, although marine segment revenue increased 6 percent.

The company reported total revenue of $674 million, down 7.5 percent from $729 million in the second quarter last year. Automotive/mobile segment revenue dropped 19 percent, but the company's other segments saw revenue growth.

Revenue in the marine segment was $79 million, the company reported.

Profits fell 19 percent for the quarter, which ended June 25. Garmin reported earning $109.5 million, or 56 cents a share, compared with $134.8 million, or 67 cents a share, a year earlier. Excluding currency effects and other items, earnings fell 26 percent, to 63 cents a share, from 85 cents a share.

For the year to date, Garmin reported revenue of $1.18 billion, up 2 percent from $1.16 billion in 2010. Marine segment revenue increased 13 percent, to $130 million.

"In the second quarter, revenue was slightly ahead of our expectations and we delivered strong free cash flow generation, but margins fell short, driven by increased deferral of high-margin revenues associated with bundled product offerings and increased operating costs due to bad debt and legal expenses," chairman and CEO Min Kao said in a statement.

"The marine segment posted revenue growth of 6 percent, with our new series of echo fishfinders doing well in the market," he added. "These products have a lower margin profile than our chart plotters and networked solutions, which has put some pressure on the operating profit of the segment. We expect the margins to improve as product mix normalizes throughout the remainder of the year."

You May Also Be Interested In...

April 16, 2015

Breaking News

The National Marine Manufacturers Association canceled the Progressive Chicago In-Water Boat Show, which was set to take place June 11-14, and will stop producing the annual show.
April 16, 2015

West Marine announces new "Deck Out Dad" social media contest

West Marine has launched a new social media campaign called Deck Out Dad!
April 03, 2015

66 Days At Sea

We are happy to report that after being adrift at sea and lost for 66 days, Louis Jordan has been rescued 200 miles off the coast of South Carolina.
April 01, 2015

JC Manufacturing becomes JC TriToon Marine

Formerly known as JC Manufacturing, the Indiana-based pontoon manufacturer has officially changed its name to JC TriToon Marine.
March 31, 2015

Cascade Cycleboats launches pedal-powered boat tours

A rickshaw by any other name...wouldn't be a rickshaw anymore, I guess. But Cascade Cycleboats certainly evoke those three-wheeled conveyances of years past.
March 19, 2015

Carefree Boat Club adds location in Georgia

Carefree Boat Club has just opened a brand new location, adding to its ever-growing lineup.
Follow us on Facebook!  Follow us on Instagram!  Follow us on Twitter!  Follow us on YouTube!