Revenue at Garmin Ltd. was down 16 percent in the fourth quarter, from $910 million in 2011 to $769 million in 2012, due in part to slumping automobile sales, the company reported.
Revenue declined across all segments except fitness, where Garmin saw a 10 percent increase. The marine segment dipped 9 percent, to $39 million, the company reported Wednesday. The automobile segment was off 25 percent.
Garmin said earnings for the quarter that ended Dec. 29 fell to $129.3 million, or 66 cents a diluted share, from $165.6 million, or 85 cents a diluted share, a year earlier. Adjusted earnings were $132.5 million, or 68 cents a share, compared with $187.5 million, or 96 cents a share, in the year-earlier period.
For the year, Garmin said earnings rose to $542.4 million, or $2.76 a diluted share, from $520.9 million, or $2.67 a diluted share, in 2011. Adjusted earnings were $559.8 million, or $2.85 a diluted share, compared with $531.7 million, or $2.73 a diluted share.
“While fourth-quarter results did not meet our expectations, we remain excited about the long-term opportunities that are developing as we continue to invest in growing industries and expand our strong position in others,” Garmin CFO Kevin Rauckman said in a statement. “With dedicated associates and a diversified business model we will execute around a 2013 business plan focused on innovation and efficiency to drive long-term growth.”
For the year, total revenue was down 2 percent, from $2.76 billion in 2011 to $2.72 billion in 2012, with the marine segment tumbling 6 percent.
“The marine industry, like aviation, has been slow to recover and economic turmoil in southern Europe has worsened the situation,” Garmin president and CEO Cliff Pemble said in a statement. “We have continued to invest heavily in research and development for our marine segment, causing a significant decline in operating margins and profits. While this is difficult in the near term, we do believe that it is justified by the long-term opportunities presented in terms of both market share gains and industry improvement. New chart plotters, fishfinders and a marine-focused watch are a result of this investment and should allow us to return to revenue growth in 2013.”
The company expects 2013 revenue of $2.5 billion to $2.6 billion “as growth in the outdoor, fitness, marine and aviation segments partially offset declines in the [Personal Navigational Device] market,” the company said.
Garmin’s stock dipped more than 9 percent on Wednesday, closing at $35.54. The year low was $34.65 and the year high was $50.67.