Outdoor and Fitness give Garmin a boost in Q2 2012

Garmin Ltd has confirmed its results for the fiscal quarter ended 30 June 2012 – with total revenue of US$718 million, up 7% year on year.

Across its operating divisions, Garmin reported:

  • Automotive/Mobile segment revenue increased 8% to US$392 million
  • Outdoor segment revenue increased 24% to US$100 million
  • Fitness segment revenue increased 5% to US$82 million
  • Aviation segment revenue increased 4% to US$76 million
  • Marine segment revenue decreased 14% to US$68 million

By region, the Americas and EMEA (Europe, Middle East and Africa) posted revenue growth in the second quarter:

  • Americas revenue was US$392 million compared to $358 million, up 9%
  • EMEA revenue was US$269 million compared to $253 million, up 6%
  • APAC (Asia Pacific) revenue was US$57 million compared to $63 million, down 9%

Dr Min Kao, Chairman and Chief Executive Officer at Garmin said, “In the second quarter of 2012 we again posted strong revenue, unit volumes and operating income even though the global economy is still difficult.

“We have had a great first half; yet, we remain cautious given the macroeconomic dynamics facing each of our segments. Overall, we believe we are executing well in both the current environment and in preparation for long‐term sustained growth.”

Kao continued, “The outdoor segment posted revenue growth of 24% in the quarter. Growth was driven by our golf line‐up, dog tracking and training, and our recently refreshed eTrex series. During the quarter, we introduced our latest outdoor product, the fēnix wristwatch. This product offers both a feature‐rich experience for the outdoorsman and also a classic style for everyday use.

“The fitness segment posted revenue growth of 5% in the quarter compared against strong performance in 2011 – driven by promotional activity on the Forerunner 305 and the launch of the Forerunner 610. In the current quarter, new products such as the high‐end Forerunner 910XT sold well and drove margin expansion for the fitness segment. In late June, we introduced the Garmin Swim – targeting a new niche for us in the fitness market. The product has already been well‐received in the swimming community.

“We anticipate growth rates will improve in the second half of 2012 as we launch new products for the holiday season to drive further market penetration.”



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