Create a free Manufacturing.net account to continue

Garmin 2Q Profit Falls

Maker of global positioning systems said second-quarter profit dropped 19 percent on lower sales at its automotive and mobile segment.

NEW YORK (AP) -- Garmin Ltd., which makes global positioning systems, said Wednesday its second-quarter profit dropped 19 percent on lower sales at its automotive and mobile segment.

The Swiss company earned $109.5 million, or 56 cents per share, down from $134.8 million, or 67 cents per share, in the same quarter last year. Excluding the effects of foreign currency gains and losses, the company had an adjusted profit of 63 cents per share, compared with an adjusted 85 cents per share last year.

Sales dropped 7.5 percent to $674.1 million from $728.8 million. That included a 19 percent decrease in automotive and mobile revenue, to $363 million.

Analysts, on average, expected an adjusted profit of 67 cents per share on $634.9 million in sales, according to a FactSet survey.

Garmin said that while vehicle production increased during the quarter, those increases were more than offset by volume declines in the North American personal navigation device market and a shift in product mix. Sales at the rest of the company's segments rose to varying degrees.

For the full-year 2011, the company said it expects to post an adjusted profit of $2 to $2.15 per share on $2.5 billion to $2.6 billion in sales. Analysts polled by FactSet expect a 2011 profit of $2.44 per share on $2.49 billion in sales.

More in Industry 4.0