Garmin also reported that for the first 3 months of the year, sales of PNDs (portable navigation devices) showed a narrower decline than expected in the U.S. and the European market also performed better than expected. Average selling prices for PNDs also remained flat with last year and are forecast to hold firm for the remainder of the year.
As a result, Garmin saw an increase in sales in its automotive division of 6 percent to $280 million for Q1 ending in March compared to a year ago, it said Wednesday.
The gains in automotive are not expected to continue, however. Garmin predicts the total PND global market wi;ll shrink by 10 percent this year. The company also said it has a 66 percent market share in PNDs in the U.S., up from about 63 percent earlier.
In terms of the company’s recent entry into the full auto infotainment OEM market (not just OEM GPS, as in the past), Garmin said, “Suzuki is just the beginning as it relates to broader market opportunities,” according to COO Cliff Pemble.
In other categories, Garmin said outdoor product sales increased 16 percent to $77 million in Q1 compared to a year ago. Fitness product sales rose by 26 percent to $71 million, marine sales grew by 9 percent to $56 million and aviation sales grew 5 percent to $73 million.
As far as its overall sales, Garmin reported revenues for Q1 increased by 10 percent to $557 million compared to last year. Net income was $496,000, compared to a loss of $17.6 million in the quarter a year ago.