Garmin Ltd has unveiled its second quarter results for the period ended 25 June 2011. Total company revenue reached US$674 million, down 8% from US$729 million in Q2 2010. However, while the company’s largest Automotive/Mobile unit saw revenue declines (-19%), four of Garmin’s business units posted growth.
Garmin’s Outdoor segment revenue increased 1% to US$81 million. Aviation saw revenue increase 13% to US$73 million. The Marine segment revenue increased 6% to US$79 million. Garmin’s Fitness segment was the star performer in growth terms, posting revenue growth of 25% to reach US$78 million in Q2 2011.
Geographically, both Europe and Asia contributed growth in second quarter 2011. European revenue was US$253 million, up 12%. Asia revenue was US$63 million, up 31%. Yet, North America revenue was down 21%.
Garmin sold 3.8 million units in the second quarter of 2011, with unit growth in both Europe and Asia. The company noted that it ‘maintained strong market share position in North America and grew market share across Europe.’
A further highlight in Q2 2011 was the launch of the Garmin Forerunner 610 fitness watch, which according to the company ‘has been met with strong demand and exceptional reviews.’
“In the second quarter, revenue was slightly ahead of our expectations and we delivered strong free cash flow generation but margins fell short driven by increased deferral of high margin revenues associated with bundled product offerings and increased operating costs due to bad debt and legal expenses,” said Dr Min Kao, Chairman and Chief Executive Officer of Garmin.
“The fitness segment posted revenue growth of 25% with strong results from our high?end Forerunner 610 and Edge 800. Our products are doing well across the value spectrum and around the globe. We believe this category remains underpenetrated, offering numerous opportunities for long?term growth.
“We remain focused on innovation, in both form factor and function that will allow us to maintain our position at the top of the GPS?enabled fitness market.”
