Garmin Earnings and Profit up
Garmin reported strong earnings again for this past quarter, reflecting a strong demand for their GPS systems. Revenue was up 62% and profit was up 19%, but excluding foreign exchange effects it was up 56% over 2005. The strong results were as a result of 168% sales growth in the automotive segment, and
To a lesser degree the other segments in which Garmin competes. Overall, Garmin sold 1.227 million GPS units, up 73% from year ago numbers. For those of you keeping score that’s about the same number of units sold as TomTom’s numbers, but considering that TomTom doesn’t compete in all the segments that Garmin does, who wins? You decide. I’m impressed with the growth of both.
It sounds like their production facilities are going all out to keep up with demand and they expect a healthy Holiday sales period during the fourth quarter. They have announced over 60 new products this year, on their way to 70; so stay tuned for more announcements for new GPS units. Expect that these new products are not going to have a major impact on holiday sales, as it’s getting late to announce, ship and sell through anything new by this point.
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Posted by Scott Martin at November 1, 2006 8:17 AM
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