Garmin reports 2Q results - Trade Only Today

Garmin reports 2Q results

Author:
Publish date:

Garmin today reported a drop in revenue for the second quarter, although marine segment revenue increased 6 percent.

The company reported total revenue of $674 million, down 7.5 percent from $729 million in the second quarter last year. Automotive/mobile segment revenue dropped 19 percent, but the company’s other segments saw revenue growth.

Revenue in the marine segment was $79 million, the company reported.

Profits fell 19 percent for the quarter, which ended June 25. Garmin reported earning $109.5 million, or 56 cents a share, compared with $134.8 million, or 67 cents a share, a year earlier. Excluding currency effects and other items, earnings fell 26 percent, to 63 cents a share, from 85 cents a share.

For the year to date, Garmin reported revenue of $1.18 billion, up 2 percent from $1.16 billion in 2010. Marine segment revenue increased 13 percent, to $130 million.

“In the second quarter, revenue was slightly ahead of our expectations and we delivered strong free cash flow generation, but margins fell short, driven by increased deferral of high-margin revenues associated with bundled product offerings and increased operating costs due to bad debt and legal expenses,” chairman and CEO Min Kao said in a statement.

“The marine segment posted revenue growth of 6 percent, with our new series of echo fishfinders doing well in the market,” he added. “These products have a lower margin profile than our chart plotters and networked solutions, which has put some pressure on the operating profit of the segment. We expect the margins to improve as product mix normalizes throughout the remainder of the year.”

Related

E-nnovation Lab to expand at 2018 Metstrade show

The growing demand for hybrid and electric engines is becoming more apparent within the leisure marine market, prompting Metstrade to introduce the E-nnovation Lab platform for electric propulsion technology.

Aluminum, tow boats lead moderate growth in May

Boat registrations were up 2.1 percent in May in the main powerboat categories, and rose 3.2 percent in all categories, according to preliminary data from Statistical Surveys Inc., a Michigan company that tracks new boat registrations.

Retaliatory tariffs on boats to EU start today

The 25 percent tariff the EU announced Wednesday on U.S.-built boats kicks in today, and a 10 percent tariff on boats sold to Canada will start July 1, prompting boatbuilders to worry they will lose sales to those countries.