Garmin reports 4Q, year-end results

Author:
Publish date:
Social count:
0

Revenue at Garmin Ltd. was down 16 percent in the fourth quarter, from $910 million in 2011 to $769 million in 2012, due in part to slumping automobile sales, the company reported.

Revenue declined across all segments except fitness, where Garmin saw a 10 percent increase. The marine segment dipped 9 percent, to $39 million, the company reported Wednesday. The automobile segment was off 25 percent.

Garmin said earnings for the quarter that ended Dec. 29 fell to $129.3 million, or 66 cents a diluted share, from $165.6 million, or 85 cents a diluted share, a year earlier. Adjusted earnings were $132.5 million, or 68 cents a share, compared with $187.5 million, or 96 cents a share, in the year-earlier period.

For the year, Garmin said earnings rose to $542.4 million, or $2.76 a diluted share, from $520.9 million, or $2.67 a diluted share, in 2011. Adjusted earnings were $559.8 million, or $2.85 a diluted share, compared with $531.7 million, or $2.73 a diluted share.

“While fourth-quarter results did not meet our expectations, we remain excited about the long-term opportunities that are developing as we continue to invest in growing industries and expand our strong position in others,” Garmin CFO Kevin Rauckman said in a statement. “With dedicated associates and a diversified business model we will execute around a 2013 business plan focused on innovation and efficiency to drive long-term growth.”

For the year, total revenue was down 2 percent, from $2.76 billion in 2011 to $2.72 billion in 2012, with the marine segment tumbling 6 percent.

“The marine industry, like aviation, has been slow to recover and economic turmoil in southern Europe has worsened the situation,” Garmin president and CEO Cliff Pemble said in a statement. “We have continued to invest heavily in research and development for our marine segment, causing a significant decline in operating margins and profits. While this is difficult in the near term, we do believe that it is justified by the long-term opportunities presented in terms of both market share gains and industry improvement. New chart plotters, fishfinders and a marine-focused watch are a result of this investment and should allow us to return to revenue growth in 2013.”

The company expects 2013 revenue of $2.5 billion to $2.6 billion “as growth in the outdoor, fitness, marine and aviation segments partially offset declines in the [Personal Navigational Device] market,” the company said.

Garmin’s stock dipped more than 9 percent on Wednesday, closing at $35.54. The year low was $34.65 and the year high was $50.67.

Click here for the full release.

Related

American Sailing Association reaches milestone

The American Sailing Association recently certified its half-millionth sailor. Since the association was founded in 1983, its affiliated schools and instructors have taught and certified more than 507,000 people to ASA’s 101 Keelboat Sailing standard.

First set of tariffs on aluminum sheet announced

The U.S. Commerce Department announced the countervailing tariff amounts on aluminum sheet from China, with varying amounts imposed on different Chinese suppliers that are scheduled to take effect within two to five business days.