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With marine showing strong gains, Garmin reports 8 per cent increase in Q2 sales

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Garmin today reported second-quarter sales of $894 million, up 8 percent over the same quarter a year ago. The electronics manufacturer reported net income of $190.3 million, compared to $179.9 million a year ago.

Garmin said in a statement that sales in its marine business rose 24 percent, compared to the year-ago quarter, to $134.5 million. Its fitness and aviation businesses reported 24 and 23 percent gains, respectively. Second-quarter revenues in its auto business fell 19 percent for the quarter.

Garmin CEO Cliff Pemble said the 24 percent marine sales increase was driven by “organic growth across multiple product categories and our Navionics acquisition.” Gross margin increased year over year to 59 percent. Operating margins declined to 21 percent, and operating income grew by 14 percent.

“During the second quarter of 2018, we introduced the award-winning Panoptix LiveScope, a live scanning sonar that allows anglers a real-time, clear image in front of, below and around their boat,” Pemble said. “We were also selected as the exclusive marine electronics supplier to Sportsman Boats beginning in model year 2019.” He added that the company is focusing on market-share gains in the inland fishing category.

Pemble said the revenue gains of the first half of the year gave it “confidence” to raise its full-year guidance. It expects full-year revenue of about $3.3 billion, based on higher expectations of its fitness and aviation divisions, partially offset by “slightly lower” expectations for marine. 

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