Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Garmin Cuts Forecast as Portable-Navigation Device Market Slides

Don't Miss Out —
Follow us on:

Aug. 3 (Bloomberg) -- Garmin Ltd, the biggest maker of mobile navigation systems in the U.S., missed second-quarter earnings estimates and cut its full-year forecast because of a shrinking market for portable devices in North America.

Earnings per share declined to 56 cents from 67 cents a year earlier, the manufacturer said today in a statement. Profit was less than the average of 67 cents a share of 12 analyst estimates compiled by Bloomberg. Garmin said earnings in 2011 will be within a range of $2 to $2.15 a share, down from a forecast of $2.25 to $2.50 and less than the average estimate of $2.44.

Garmin, which competes with Amsterdam-based TomTom NV, aims to get more revenue from maps, services and built-in systems in cars and global positioning systems for bicyclists and golfers amid a slowdown in sales of portable navigation devices for vehicles.

The automotive division posted a 19 percent drop in revenue because of “significant” volume declines of portable navigation devices in North America, which overwhelmed growth in installations of in-vehicle systems, Garmin said.

Garmin fell as much as 5.6 percent to $29.76 and was down 2.5 percent as of 9:55 a.m. in Nasdaq Stock Market trading in New York. That propelled the stock to a 3.1 percent drop this year.

To contact the reporter on this story: Maaike Noordhuis in Amsterdam at mnoordhuis@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.