Garmin Reports Record Third Quarter Revenues with Strong Operating Margin and Increased Market Share

CAYMAN ISLANDS—(BUSINESS WIRE)—October 29, 2008— Garmin Ltd. (Nasdaq: GRMN) today announced third quarter results for the period ended September 27, 2008.

Third Quarter 2008 Financial highlights:

  • Total revenue of $870 million, up 19% from $729 million in third quarter 2007
  • Automotive/Mobile segment revenue increased 21% to $626 million in third quarter 2008
  • Outdoor/Fitness segment revenue increased 35% to $119 million in third quarter 2008
  • Aviation segment revenue increased 9% to $81 million in third quarter 2008
  • Marine segment revenue decreased 8% to $44 million in third quarter 2008
  • North America and Europe continued to experience growth:
  • North America revenue was $585 million compared to $454 million, up 29%
  • Europe revenue was $247 million compared to $227 million, up 9%
  • Asia revenue was $38 million compared to $48 million, down 21%
  • Gross margin of 44.3% compared to 45.8% in second quarter 2008 and 46.9% in third quarter 2007
  • Operating margin of 24.6% compared to 26.2% in second quarter 2008 and 29.4% in third quarter of 2007
  • Diluted earnings per share of $0.82 compared to $0.88 in third quarter 2007; excluding foreign exchange, EPS was $0.87 compared to $0.89 in the same quarter in 2007.

Year-to-Date 2008 Financial highlights:

  • Total revenue of $2.45 billion, up 25% from $1.96 billion in year-to-date 2007
  • Automotive/Mobile segment revenue increased 27% to $1.71 billion in year-to-date 2008
  • Outdoor/Fitness segment revenue increased 37% to $308 million in year-to-date 2008
  • Aviation segment revenue increased 14% to $256 million in year-to-date 2008
  • Marine segment revenue was flat at $171 million in year-to-date 2008
  • All geographic areas experienced growth:
  • North America revenue was $1.57 billion compared to $1.23 billion, up 28%
  • Europe revenue was $764 million compared to $631 million, up 21%
  • Asia revenue was $109 million compared to $101 million, up 8%
  • Diluted earnings per share increased 7% to $2.68 from $2.50 in year-to-date 2007; excluding foreign exchange, EPS increased 10% to $2.74 from $2.48 in year-to-date 2007. Year-to-date EPS includes $0.27 related to a gain of $72 million from the tender of our Tele Atlas N.V. shares.

Business highlights:

  • Sustained revenue growth in our automotive/mobile, aviation, and outdoor/fitness segments put them on track for strong revenue growth again in 2008.
  • 3.9 million units sold in the third quarter of 2008, up 43% from the same quarter in 2007; 10.6 million units sold year-to-date, an increase of 56% from the same period in 2007.
  • Moderated pricing declines allowed us to post better than expected margins in the automotive/mobile segment.
  • Introduced the holiday product line-up including products in the nüvi® 2x5 and nüvi® 7x5 series offering free lifetime traffic alerts from NAVTEQ Traffic.
  • Achieved FAA certification of the revolutionary G600 avionics suite for the retrofit and forward-fit avionics markets.
  • Introduced new line of VHF marine radios and a marine wind sensor.
  • Completed the acquisition of our Austrian and Portuguese distributors and announced our intent to acquire our distributor in Sweden. These activities are part of our ongoing efforts to further improve our market share and operating efficiencies in Europe.
  • Repurchased 8.2 million shares in the third quarter.

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