Schaffhausen,
Switzerland – Garmin grew its share of the declining portable navigation device
(PND) market in the U.S. to around 70 percent of units sold in the second
quarter as the company posted its third consecutive quarter of revenue and
operating-income growth.
The navigation supplier
also reversed a first-quarter decline in net profits to boost second-quarter
net profits by 69.8 percent to $185.9 million.
The company
continues to expect a 10 percent to 15 percent drop in worldwide PND sales for
the year.
For the second
quarter ending June 30, the company posted a 7 percent gain in revenue to
$718.2 million, a 55 percent gain in operating income to $204 million, and a 69.8
percent gain in net income to $185.9 million.
For the first half, net sales grew 7.9 percent
to $1.28 billion, operating income grew 42.6 percent to $294.3 million, and net
income grew 33.1 percent to $272.8 million.
Revenues in the
Americas grew 9 percent to $392 million in the quarter and 8 percent in the
half to $688 million.
The biggest
first-quarter revenue gains came in the company’s outdoor and fitness markets,
where the company posted, respectively, gains of 20 percent to $1.78 million
and 14 percent to $153 million.
The
automotive/mobile segment, which includes PNDs and OEM sales to automakers,
rose 8 percent to $392.1 million and by 7 percent in the half to $671 million.
Segment operating income grew 244.6 percent to $87.1 million in the quarter and
by 291 percent in the half to $105 million.
