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Garmin Q4 PND Sales Off, Despite Share Gains

Schaffhausen, Switzerland – Market-share gains in Garmin’s portable navigation device (PND) segment could not offset declining industrywide PND sales in the fourth quarter, helping drive down Garmin’s   fourth-quarter consolidated sales by 16 percent to $768.5 million.

 Garmin also posted fourth-quarter sales declines in its outdoor, aviation and marine GPS segments, though fitness-segment revenues grew.

The automotive segment, which consists of PND and automotive OEM sales, accounted for 57 percent of sales in the fourth quarter and 45 percent in 2012.

For the quarter, Garmin’s consolidated operating income was down 75 percent to $149.8 million, and net income was down 22 percent to $129.3 million.

For the full year, the company posted a consolidated sales decline of 2 percent to $2.72 billion, a 9 percent decline in operating income to $604.2 million, and a net-income decline of 4 percent to $542.4 million.

For 2013, the company forecasts $2.5-$2.6 billion in sales, down from 2012’s $2.72 billion, because ongoing declines in the PND market will only be partially offset by growth in outdoor, fitness, marine and aviation products, the company said.

In the PND/OEM segment in the fourth quarter, “our consistent market-share gains could no longer offset the industry declines,” the company said. “Though the PND market size continued to decline in 2012, we again emerge from the year with increased market share and strong profitability.”

Fourth-quarter PND/OEM sales fell 25 percent to $436.7 million, with operating income falling 35 percent to $50.6 million.

Full-year PND/OEM sales fell 6 percent to $1.49 billion, with the segment’s operating income falling 71 percent to $160.8 million.