Garmin's Q2 Automotive GPS Sales, Profits Fall - Twice

Garmin's Q2 Automotive GPS Sales, Profits Fall

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Schaffhausen, Switzerland - Second-quarter sales in Garmin's automotive segment fell 18.9 percent year-over-year to $362.7 million following a first-quarter gain of 19.7 percent, but the segment's income fell almost as sharply as it did in the first quarter.

Segment operating profits fell 71.5 percent to $25.3 million following a first-quarter from of 91 percent to $1.6 million, the company said in its

earnings release

.

The segment comprises sales of portable navigation devices (PNDs) worldwide and OEM sales of Garmin's GPS technology to automakers and aftermarket autosound suppliers.

Garmin attributed the second-quarter sales drop-off to "significant volume declines" in North American PND sales, which were not offset by rising OEM sales. Despite the North American PND sales decline, Garmin said it "maintained strong PND market share in North America and grew market share across Europe."

The first-quarter sales gain, Garmin previously said, stemmed mainly from rising OEM sales, although PND sales rose slightly as well.

Garmin also sales GPS equipment in the outdoor, fitness, marine and aviation markets, and first-quarter sales rose in all four segments, with operating profits rising in two of the four.

On a consolidated basis, Garmin sales fell in the quarter by 8 percent to $674 million, and operating profits fell 34.9 percent to $131.6 million. Net profits fell 46.6 percent to $109.5 million.

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