Garmin Net off 49%; Retail Inventory Down
Garmin announced earnings and said that while their net was off 49%, and their topline sales down 14% on a 17% sales drop in the automotive segment. While that might sound terrible, it is pretty good considering the world is falling apart for some companies. The outdoor/fitness segment was off just 5% as was the aviation segment. The marine segment showed flat sales. While North America was off 9%, Asia was off 17% and Europe was off 26%.
CEO Min Kao said,"A significant highlight for 2008 is our gross margin performance of 44.5% which is down just 150 basis points from 2007. We also achieved a strong operating margin of 24.7% which exceeded our earlier expectations. Throughout 2008, we maintained our strong cash position with free cash flow generation of $743 million which was enhanced by the significant reduction in inventory during the quarter. This cash flow allowed us to fund our stock repurchase plan, pay a $0.75 per share dividend, and remain a debt‐free company. "
They also indicated that the bloated inventories present after the holidays in the retail channel, appear to be dropping which is a good thing for Garmin as they will start to move more GPS units into the stores for spring selling events.
the Specific Press Release can be found at the Garmin Website
Read More in: Earnings Announcements | Garmin GPS News
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Posted by Scott Martin at February 24, 2009 7:56 PM
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