Schaffhausen, Switzerland – A slight decline in Garmin’s portable navigation device (PND) business was offset by gains in the company’s OEM automotive segment and other market segments to boost the company’s third-quarter sales by 1 percent to $672 million.
A “slight decline” in PND revenues was offset by “strong growth” in OEM revenues from automakers, the company said. “We believe that our PND volumes continue to trend ahead of the industry due to market share gains,” added Dr. Min Kao, chairman/CEO.
Net income fell by 6.7 percent in the quarter to $140.3 million, but excluding the effects of currency fluctuations, net income would have been up 6 percent to $145.8 million, the GPS company said.
Garmin’s other segments consist of aviation, marine, fitness and outdoor GPS.
In the mobile/automotive segment consisting of PNDs and OEM navigation, Gamin posted flat sales of $384 million in the quarter.
The company said it maintained its global PND market share with roughly 70 percent share in the U.S. market and more than 32 percent share in major European markets.
For the year to date, companywide revenues were up 5 percent to $1.95 billion, and net income was up 16.7 percent to $413.1 million. Excluding currency fluctuations, year-to-date net income would have been up 24.1 percent to $427.3 million, the company said.
The company said it is posting gains because of its diversification into new segments of the GPS market. “Due to the diverse markets that we serve, we were able to again post growth in revenue, unit volumes, and operating income during the third quarter of 2012,” said Kao. He said that as a result of the third-quarter results, Garmin is raising its full-year EPS guidance to $2.75 to $2.90.