Garmin reports 4Q, year-end results

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Garmin today announced that revenue in its marine segment increased 9 percent in the fourth quarter.

Total revenue for the quarter that ended Dec. 25 was down 21 percent, to $838 million, from $1.06 billion in the fourth quarter of 2009. The marine segment provided $37 million.

Profits for the quarter fell 52 percent, to $132.9 million, or 68 cents a share, from $278.4 million, or $1.38 a share, in the fourth quarter of 2009.

For fiscal 2010, marine segment revenue increased 12 percent, to $199 million. Total revenue for the year was $2.69 billion, down 9 percent from $2.95 billion in 2009, the Swiss-based company reported.

Profits for the year totaled $584.6 million, down from $703.95 million in fiscal 2009. Diluted earnings per share decreased 16 percent, to $2.95, from $3.50 in fiscal 2009.

Among its business highlights, Garmin noted that it had "achieved significant full-year revenue and operating income growth in outdoor/fitness, marine and aviation. These growth segments generated 61 percent of the total operating income in 2010."

"While 2010 represented a year of adversity for our PND business and our handset initiative, we exit the year with a growing presence in outdoor/fitness, aviation, marine and auto OEM that give us confidence in the long-term outlook for Garmin," Garmin chairman and CEO Min Kao said in a statement.

"Strong revenue and operating income performance in these segments was a highlight for the year and a foundation on which we hope to grow. The business generated free cash flow of $738 million, which further strengthened our debt-free balance sheet and afforded us the opportunity to return significant value to shareholders in 2010 through a dividend and share repurchases.

"As we look forward to 2011 we are excited to be launching Garmin marine electronics with a growing number of OEM partners, including Volvo Penta, Bavaria Yachts, Tiara Yachts and Chaparral," he added. "In addition, we have refreshed our fishfinder lineup for the spring season. Throughout the coming year we will continue to build our position in the segment through innovation and OEM relationships that offer long-term growth."

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