Garmin reports 3Q results

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Garmin today announced a drop in total revenue for the third quarter, which ended Sept. 25, but said its marine segment revenue was up 1 percent.

Switzerland-based Garmin reported total revenue of $692 million, down 11 percent from $781 million in the third quarter last year. Marine segment revenue increased 1 percent, to $46 million.

The marine segment posted strong margin performance for the quarter, and operating income grew 33 percent, the company said.

"After a strong second quarter, the industry weakened, as reported by many of our retail and OEM partners. While it is disappointing to see recovery in the industry falter, we are continuing to forge ahead with our growth strategies, as the long-term profit potential for the segment is solid," chairman and CEO Min Kao said in a statement.

"As affirmation of our growing OEM presence, we were selected by the American Boatbuilders Association as a Preferred Supplier of Choice," he added. "This selection improves our standing with 13 member OEMs who collectively produce more than 15 percent of all boats 16 feet or larger in North America."

Garmin reported pro forma earnings of 70 cents a share for the quarter, compared with $1.02 a share for the same period last year.

For the year to date, Garmin reported total revenue of $1.85 billion, down 2 percent from $1.89 billion for the same period last year. In the marine segment, year-to-date revenue increased 13 percent, to $162 million.

For the year, Garmin expects revenue of $2.65 billion to $2.75 billion.

"We anticipate both gross and operating margins to decline from the excellent margins generated in 2009, but at a much slower rate than had been earlier anticipated," the company said. "These factors, combined with the increased effective tax rate, result in a forecasted 2010 EPS of $2.70-$2.90."

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