Garmin reports 2Q results

Author:
Updated:
Original:

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.

Related

A Win for Gulf Reef Fish

The newly authorized DESCEND Act requires anglers to use descending gear when releasing catches in federal Gulf of Mexico waters.

Coast Guard Foundation Names Chairman

Thomas A. Allegretti will lead the non-profit’s board of directors.

In-Person Charleston Show Opens Friday

Under Covid-19 guidelines, the South Carolina boat show has a modified format for the safety of attendees and exhibitors.

Polaris Sees Q4 Surge

The powersports manufacturer had solid gains in every segment, with boat sales up 20 percent.

ABYC Updates Board

The group added a new member and elected several officers, including Nancy Cueroni as chairman.

Quick Hits: January 27, 2021

ICOMIA release its latest state of the industry report; one of the country’s largest waterjet cutting machines goes online at Maine’s Front Street Shipyard; and T-H Marine Supplies names a new national sales and marketing manager.

Q&A with Martin Bjuve

Volvo Penta of the Americas president and lifelong boater Martin Bjuve.

Changing Currents

E-mobility efforts remain centered outside of the U.S.

The Evolving Retail Culture

Finding new ways to connect with boaters.