Garmin reports 4Q, year-end results

Garmin reported strong fourth-quarter and 2016 results as sales and profits rose from year-earlier figures.
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Garmin reported strong fourth-quarter and 2016 results as sales and profits rose from year-earlier figures.

The company said it had net sales of $860.8 million for the quarter that ended Dec. 31, up 10 percent from $781.4 million in the year-earlier quarter.

Profit for the quarter was $136.6 million, or 72 cents a diluted share, up from $132.4 million, or 70 cents a share, a year earlier. Operating profit was up 10 percent from the prior year’s quarter.

For the full year, Garmin said it had net sales of $3 billion, up 7 percent from $2.82 billion in 2015, and a profit of $510.8 million, or $2.70 a diluted share, compared with $456.2 million, or $2.39 a share, the previous year.

“2016 was a remarkable year of growth, driven by strong sales in our outdoor, fitness, marine, and aviation segments,” Garmin president and CEO Cliff Pemble said in a statement. “Entering 2017 we see additional growth opportunities ahead, and we are well positioned to seize these opportunities with a strong lineup of great products.”

The company said it exceeded $3 billion in revenue for the first time since 2008. Outdoor, fitness, marine and aviation collectively grew 21 percent from the year prior and contributed 71 percent of total revenue. With total revenue of nearly $332 million, Garmin’s marine business segment grew 16 percent from the prior year.

The company said the marine segment posted fourth-quarter revenue growth of 19 percent, driven by its lineup of chart plotters and fishfinders.

Garmin said the marine segment’s gross margin for the quarter decreased year-over-year to 52 percent because of the product mix; the operating margin improved to 4 percent. During the quarter the company introduced new touchscreen and keyed chart plotter combo offerings in its GPSMAP product line, many with built-in sonar, and new radar and entertainment offerings.

“We expect marine to continue to be a growth segment in 2017 as we focus on market-share gains and new product innovations,” the company said in a statement.

Garmin also shipped about 16.8 million units, up 4 percent from the prior year and more than 173 million since inception.

The company said its Connect IQ app store continues to establish itself, and has had more than 2,500 apps and more than 24 million downloads since its inception.

Looking ahead, the company expects 2017 revenue of about $3.02 billion as growth in outdoor, fitness, marine and aviation is offset by ongoing declines in the PND market.

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