Garmin Ltd. today announced an increase in revenue in its marine segment despite an overall decrease in total revenue in the third quarter.
The company posted net income of $150.4 million, or 77 cents a share, for the quarter that ended Sept. 24, compared with $279.6 million, or $1.43 a share, in the quarter a year earlier. Pro-forma net income for the quarter rose to $137.6 million, or 71 cents a share, from $137.2 million, or 70 cents a share, in the prior year.
Revenue in marine increased 4 percent, to $48 million, the company reported. Garmin also saw revenue increases in its outdoor, fitness and aviation segments, but decreases in its automotive/mobile segments.
“The marine segment posted revenue growth of 4 percent, with chart plotters and fishfinders contributing growth. We continue to build the Garmin brand in the marine industry and were pleased to be selected as the official supplier of marine navigation systems to the 34th America’s Cup, illustrating our ability to deliver customized systems to the sailboat racing community,” chairman and CEO Min Kao said in a statement.
“We are investing heavily in both research and development and support infrastructure as we grow our long-term OEM presence,” he added.
Total revenue for the period was down 4 percent, from $692 million in the third quarter last year to $667 million in the most recent period.
Year-to-date revenue in marine is up 10 percent, to $179 million, the company reported. Total revenue for the year to date is flat, compared with a year earlier, at $1.85 billion.
“In the third quarter, revenue again exceeded our expectations, with fitness and aviation delivering strong growth even though macroeconomic conditions continued to be challenging. Free cash flow generation continued to be strong at $174 million in the third quarter,” Kao said.
“This supports our high-yield quarterly dividend, as well as ongoing diversification through research and development investment and strategic acquisitions,” he added. “Based on our results in the quarter we now expect to deliver revenues of approximately $2.6 billion and pro forma EPS of $2.30 to $2.40 in 2011.”