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Garmin Sales Down, Net Up In Quarter, Year

Schaffhausen, Switzerland – GPS supplier Garmin posted a 1 percent decline in fourth-quarter sales and a 3 percent full-year decline but increased net income in both periods by 26.5 percent and 12.9 percent, respectively. 2/19/2014 07:40:00 AM Eastern

Schaffhausen, Switzerland – GPS supplier Garmin posted a 1 percent decline in fourth-quarter sales and a 3 percent full-year decline but increased net income in both periods by 26.5 percent and 12.9 percent, respectively.

Sales in the North America region were down 3 percent for the quarter and 5 percent for the year.

In the quarter and year, sales in Garmin’s auto/mobile segment declined 12 percent and 13 percent, respectively. The segment accounted for 49.5 percent of total 2013 sales, down from 55 percent in 2012. The segment consists of aftermarket PNDs and OEM sales to the autosound aftermarket and to automakers. The segment also includes a portable aftermarket head-up display launched last year.

Also for the quarter and year, sales were up in the company’s other segments: aviation, outdoor, fitness and marine.

Companywide global sales fell 1 percent in the quarter to $759.7 million and fell 3 percent for the year to $2.63 billion. Operating income rose 15.2 percent in the quarter to $172.5 million but fell 5 percent for the year to $574 million.

Net income rose 26.5 percent in the quarter to $163.6 million and for the year by 12.9 percent to $612.4 million.

The company’s operating profit margin rose in the fourth quarter to 23 percent from a year-ago 19 percent and stayed flat for the year at 22 percent.

North American sales were down 3 percent for the quarter to $430.1 million and for the year by 5 percent to $1.43 billion.

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