Garmin Sales up 64%, Profit up 66%

location based services

Garmin announced some rock solid earnings growth today. Their revenue was up 64% versus year ago, while revenue in the automotive segment was up 153%! They continue to do well in North America, while Europe saw some very big growth there, up 83% in revenue versus year ago. Overall, they sold close to 1.3 million units in the quarter. Wow.
Dr. Min Kao, Chairman and Chief Executive Officer said, "The second quarter was another exciting quarter for Garmin. We are pleased to have delivered 15 exciting and innovative new products. These products, which include many automotive/mobile and marine products, have been well received by the market. We continue to experience strong sales of both new and existing automotive/mobile products, and look forward to additional new product introductions -- particularly in the automotive/mobile and aviation segments -- scheduled for delivery in the second half of 2006.”
"We continued to experience triple digit growth in our automotive/mobile segment, which demonstrates that our products continue to be well-positioned to take advantage of the growing demand for portable navigation devices both in the U.S. and in Europe. Through continuous innovation, we work to broaden and deepen our automotive/mobile product offerings to provide compelling, competitive features and attractive content integrated into easy-to-use products like the popular nuvi and c-series. We have the focus and commitment to continue our leadership position in the rapidly expanding U.S. automotive market through 2006 and continue to grow our European brand awareness and market share as well.”
Looking forward they say:-- We anticipate automotive/mobile revenue growth of greater than125 percent in 2006, with declining operating margins due to productmix and a continued transition toward mass market levels.-- We continue to look forward to introducing over 70 new products in2006. Nearly 50 new products have already been delivered in the firsthalf of 2006 in preparation for upcoming fall deliveries and theholiday season.-- We will continue to increase the production capacity of our new Taiwanmanufacturing facility throughout the remainder of 2006 to supportstrong growth within our automotive/mobile, outdoor/fitness, andmarine segments.-- Increased focus on the development of European opportunities; growthwill be supported with the acquisition of a larger Europeanheadquarters and distribution center and continued focus andcommitment of resources to build and enhance awareness of the Garminbrand.
Read More in: Garmin GPS News