Despite posting total third quarter 2010 revenue of US$692 million, down 11% year on year, Garmin did manage to post a revenue gain for its Outdoor/Fitness segment, which saw third quarter sales increase by 9% to reach US$144 million.
Garmin’s overall results were impacted by a 19% revenue decline for its Automotive/Mobile segment, which accounted for a majority (US$442 million) of total company revenue in the period.
The company noted that it sold a total of 3.8 million units in the third quarter of 2010, with unit growth in all business segments except Automotive/Mobile.
In the year to date (nine months for 2010), total revenue was down 2% to US$1.85 billion. The Automotive/Mobile segment revenue decreased 11% to US$1.11 billion. Again, Garmin’s Outdoor/Fitness segment was more resilient with total revenue up 22% to US$389 million for the first nine months.
Garmin’s third quarter results also highlight the acquisition of MetriGear, the creator of a pedal?based power solution for cycling that will be integrated with the Edge family of cycling computers.
“In the third quarter, we saw continued traction for many of our growth strategies resulting in revenue growth in three of our four segments,” said Dr Min Kao, Chairman and Chief Executive Officer of Garmin Ltd.
“While we are not satisfied with the overall results, the strong operating income performance in outdoor/fitness, aviation and marine are positive indicators for the long?term profitability of Garmin.
“The outdoor/fitness segment continued its strong performance with 9% revenue growth and 28% operating income growth due to the outstanding margin performance. The fitness business continues to have significant momentum as we approach the holiday season and we are anticipating many promotions focused on this category.
“To further enhance our position in the cycling market, we recently acquired MetriGear, whose pedal?based power solution will be incorporated with our Edge family of products to deliver the most effective cycling computer suite on the market. This acquisition highlights our goal to offer a broad portfolio of products for both the competitive athlete and the recreational fitness participant, which will allow us to capture a growing percentage of the market.”
