Amsterdam – TomTom returned to profitability in 2012, with a fourth quarter operating profit and a net profit for the year.
But the company reported that revenues fell in the fourth quarter by 19 percent to 289 million euros and by 17 percent for the full year to 1.06 billion euros.
Net profits for the quarter hit 99.5 million euros, up 744 percent, and for the full year hit 129.2 million euros, compared to a full-year 2011 net loss of 439 million euros.
Operating profits in the quarter were up 137 percent to 24.6 million euros.
Improved profitability for the year was due in part to a restructuring program launched in 2011’s fourth quarter, yielding a fourth-quarter 17 percent reduction in operating costs of 26 million euros. The quarter’s marketing expenses were down 31 percent, SG&A was down 23 percent, and R&D was down 3.2 percent.
Fourth-quarter revenue declined mainly because of lower PND sales, which the company attributed to demand that is less skewed to the fourth quarter.
Industry PND sales in Europe fell in the quarter to 2.5 million units from a year-ago 3.2 million units, and sales fell in the U.S. to 2.5 million from the year-ago quarter’s 3.7 million.
PNDs accounted for 65 percent of the company’s fourth-quarter revenues.
OEM sales to automakers also fell in the quarter because of conditions in the European auto industry, the company said.
In 2013, TomTom expects its PND unit sales to fall 15 to 20 percent and full-year revenues to hit 900-950 million euros, down from 2012’s 1.06 billion euros.