Garmin Earnings at Record Level Sales Up - Flat Outlook
Garmin had what amounts to a pretty good quarter with all product segments achieving growth on some level - off from the teeth rattling growth of years past, but pretty good considering the weak economy, the surge of mobile phone based navigation and determined competition. While the auto segment sales were only up 2%, the Outdoor Fitness area was up 32% behind strong promotion this past quarter of the older Forerunner 305, and the newer models of the Forerunner including the Forerunner 405, Forerunner 110, as well as the Edge 500.
Geographically sales in the established markets of the US and Europe were not the hot spots with revenue up 4% and 14% respectively, whereas sales in Asia were up 37%; too bad that represents less than 10% of their business. Finally sales on a unit basis were up 8%.
Garmin lowered their outlook for the rest of the year citing currency exchange factors and a lowered automobile segment forecast. The latter partially driven by the continued lowering of prices in that segment by about 5% - 10%.
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Posted by Scott Martin at August 4, 2010 9:33 AM