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Garmin’s Q3 Sales, Income Drop

Schaffhausen, Switzerland – Garmin’s
sales, operating income, and net income fell in the fiscal third quarter and
for the year-to-date as declining automotive/mobile GPS sales failed to offset
rising sales in the company’s other GPS segments.

The automotive segment consists
of portable navigation devices (PNDs) and OEM sales of Garmin’s GPS technology
to automakers and aftermarket autosound suppliers.

Automotive/mobile sales fell 13
percent in the quarter to $384.2 million because of “significant volume
declines in the North American PND market,” the company said. Automotive/mobile
sales fell for the nine-month period by 8.9 percent to $1.01 billion.

Automotive accounted for 57.6
percent of sales in the quarter and 54.7 percent for the nine-month period.

Consolidated sales fell 3.7
percent to $667 million for the quarter and by 0.2 percent for the year-to-date
to $1.85 billion. Sales rose in the company’s outdoor, fitness, marine and
aviation segments.

Despite the consolidated sales
decline, the company said it exceeded its sales expectations for both automotive/mobile
sales and consolidated sales.

In consolidated operating income,
the company posted an 11.6 percent decline in the quarter to $147.3 million and
a 21.8 percent decline for the nine-month period to $353.7 million.

Consolidated net income fell 46.2
percent for the quarter to $150.4 million and for the nine-month period by 21.3
percent to $355.3 million.

In the automotive/mobile segment,
operating income fell in the quarter by 15.6 percent to $56.2 million and by
51.7 percent for the nine-month period to $172.1 million.