As PNDs Sales Drop 25%, Garmin’s Earnings Fall

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Updated! Garmin said it expects sales of portable navigation devices (PNDs) to fall about 25 percent this year.

As sales of the once popular devices fall, so have Garmin’s earnings, which dropped 19 percent for the second quarter.

However, the company hit an all-time high in U.S. PND market share of 64 percent, and also grew its share in Europe.

Garmin earnings fallGarmin also saw double digit growth in fitness and aviation products in the quarter ended June 25.

Revenue fell 8 percent to $674 million, down from $729 million.

Net income fell to $109 million compared to $135 million a year ago.

In the automotive/mobile segment, revenue fell 19 percent to $363 million. But fitness products rose 25 percent to $78 million. Also the aviation segment rose 13 percent, marine rose 6 percent and outdoor products rose 1 percent.

Garmin finalized its acquisition of Navigon in the quarter. Navigon has a 7 percent PND share in Europe, and it markets a popular smartphone GPS app. It is expected to contribute $75 million to Garmin’s revenue in the second half.

Garmin also purchased a maker of electronics dog training equipment, Tri-Tronics, giving Garmin the opportunity to grow in the pet market.

Source: Garmin

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