Switzerland - Garmin posted first-quarter gains in revenue and operating
income, but net income fell 9 percent to $86.9 million.
Referring to its personal
navigation device (PND) sales, the company said "much of our strength was
related to global market-share gains" and that, "though pleased with the
first-quarter results, we do not expect PND revenue to continue to grow year
over year due to industrywide declines."
The company also
reported that its PND average selling prices have stabilized and that its U.S.
PND market share rose to 66 percent from a year-ago 63 percent.
In North America,
overall revenues rose 6 percent to $280 million.
Global sales gains
came in the aviation, outdoor, fitness, marine and auto/mobile segments, the
latter comprising PNDs and OEM sales of technology to automakers and
rose 6 percent to $280 million, and segment operating income grew dramatically
to $17.9 million from a year-ago $1.6 million. The segment accounted for 50
percent of the quarter's revenues.
income grew in all segments but marine and aviation, which both posted
declining operating income. Overall operating income was up 21 percent to $90.3
The company has
been diversifying into new segments, such as automaker sales, as the PND
industry has declined.