Garmin reports 1Q results

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Garmin Ltd. today announced improved results for the first quarter, including an increase in marine segment revenue.

Total revenue for the period that ended March 31 was $557 million, up 10 percent from $508 million in the first quarter of 2011. The marine segment saw a revenue increase of 9 percent to $56 million. The company’s other segments, including automotive, fitness and aviation, also posted revenue increases.

In North America, revenue was $296 million, up 6 percent from $280 million a year earlier, the company said. Europe and Asia also posted increases in revenue.

Diluted earnings per share decreased to 44 cents from 49 cents in the first quarter last year because of an increased effective tax rate; pro-forma diluted earnings per share increased 5 percent, to 45 cents, from 43 cents in the same quarter in 2011.

Net income for the first quarter was $86.9 million, compared with $95.5 million for the quarter a year earlier. On a pro-forma basis, earnings were $88.6 million for the current year’s quarter, up from $83.5 million for the prior year’s quarter.

Among its quarterly highlights, Garmin announced marine OEM relationships with Teleflex and Viking at the 2012 Miami International Boat Show.

“The first quarter of 2012 provided strong revenue performance, as each of our business segments contributed to 10 percent revenue growth,” chairman and CEO Min Kao said in a statement. “The revenue growth of our core business segments of outdoor, fitness, aviation and marine was 14 percent, highlighting the continued diversification in our business model. We continue to grow our research-and-development investment in these segments, as well as auto OEM, in order to capitalize on the numerous long?term growth initiatives in each of them.”

In the marine segment, Kao added, revenues grew 9 percent year over year and 30 percent sequentially as warm weather brought an early start to the marine season.

“The boating industry is again showing signs of recovery, but much uncertainty remains, with high fuel prices and continued tight credit for luxury items,” he said. “As we have previously highlighted, this will be a year of investment and, thus, reduced operating margins.”

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