Garmin reports 2Q results

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Garmin Ltd. today reported a 27 percent decline in revenue for the second quarter, which ended June 27.

Total revenue was $669 million in the recent quarter, compared to $912 million in the year-ago quarter. Marine segment revenue decreased 15 percent to $60 million in the 2009 quarter.

Net income declined to $161.9 million, or 81 cents per diluted share, from $256 million or $1.19 cents per diluted share in the 2008 quarter.

"While the macroeconomic conditions continue to dampen consumer demand, we are encouraged by the 53 percent sequential improvement in revenues in the second quarter," chairman and CEO Min Kao said in a statement. "We are also pleased with the solid margins and earnings in the quarter achieved by the various initiatives that we have taken to improve productivity, reduce expenses and utilize the strength of our balance sheet."

He noted that the marine segment posted strong sequential growth at 58 percent, despite a 40 percent decline in the general marine market.

"We were able to significantly outperform the market on the strength of our marine product lineup," said Kao.

This includes new chartplotters, autopilot, VHF radios and radars that helped further Garmin's penetration into larger boats and OEM markets, the company said.

For the first six months of 2009, total revenue declined 30 percent to $1.11 billion, from $1.58 billion last year. Marine segment revenue decreased 23 percent to $98 million. Net income for the 2009 period was $210.4 million, or $1.05 per diluted share, compared to $403.8 million or $1.86 per diluted share last year.

Looking forward, Kao said, "While we do not expect to post growth until the macroeconomic conditions improve, we do expect that year-over-year declines will continue to improve throughout the year."

In related news, Garmin's board of directors approved an annual cash dividend of 75 cents per share, payable Dec. 15 to shareholders of record on Dec. 1.

Click here for the full release.

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