Garmin closes the third quarter with consolidated income
The firm obtains a high global turnover of 1,140 million dollars, which still represents a decrease of 4% compared to the figure registered in the quarter of the previous year, as a result of the strengthening of the US dollar. A period of time that has also been characterized by the good reception of its Response Center with more than 10,000 SOS responses since the inReach services were launched.
November 2022.- Garmin has just announced its financial results for the third quarter of 2022, in which it has registered a global turnover of 1,140 million dollars, compared to 1,191 million dollars obtained during the same period of the previous year, mainly due to to the strengthening of the US dollar. Gross margin increased by 58.8% and operating margin was 21.0%, while operating income reached 239 million dollars, which represents a decrease of 15% compared to the analogous quarter of 2021.
During these months and since the presentation of its Inreach services, the firm has registered more than 10,000 SOS responses through its Response Center, which translates into the importance that bidirectional satellite messaging is assuming for its users. Added to all this is the recognition for the nineteenth consecutive year of being ranked first in aviation product support, awarded by Aviation International News, as well as five awards for the excellence of its devices and being named Manufacturer of the Year by the National Association of Marine Electronics for the eighth consecutive time.
In the words of Salvador Alcover, general director of Garmin Iberia: “ This third quarter, revenues suffered the consequences of the strengthening of the US dollar, and the performance of some fitness devices, such as indoor cycling. However, gross margin increased, and operating margin remained strong from the previous quarter. Thus, based on the trends that we have been able to observe this year, we must adjust our revenue forecasts for future financial results. We believe that the future increase in EPS, our innovative product line and our vertical integration strategy will allow us to move forward strongly in this changing economic environment .”
Data by sectors
Regarding the data by sectors, the Outdoor segment stands out , in which turnover grew by 5% in the third quarter, mainly as a result of the sale of adventure watches and inReach devices and services. Gross and operating margin were 65% and 36%, respectively, which reflected in operating income of $121 million. During the quarter, inReach Messenger was introduced, a versatile new communication-focused device with global two-way text messaging, location sharing and SOS capabilities.
For its part, the turnover of the Aviation sector rose by 4% during this period, driven by growth in various product lines, mainly in the aftermarket. Gross and operating margins were 73% and 26%, respectively, for $48 million of operating income. During the quarter, the firm announced that Tactical Air has selected the G3000® Integrated Flight Platform to modernize the US Department of Defense’s fleet of F-5 aircraft in the Navy and Marine Corps.
Meanwhile, in the Nautical segment, revenues decreased by 5%, mainly due to the return of typical seasonal trends. Gross margin and operating margins for this segment were 56% and 23%, respectively, translating to $45 million of operating income. During this period, the multinational company launched the LiveScope® XR system, which brings innovative live scanning sonar technology to deep sea fishing, allowing anglers to view real-time images of fish and structure up to 500 feet. in front of or under the boat.
As for the Automotive area , revenue was down 2%, although the decline in consumer products was offset by growth in OEM programs with car brands. Gross margin was 40%, and an operating loss of $16 million was posted due to investments in OEM programs. During the quarter, it was announced that our Tread® Navigators have been selected by Arctic Cat, Inc. to become standard equipment on select side-by-side vehicles beginning in 2023.
Finally, the data for the Fitness segment decreased by 18% due to lower revenues from wellness products (represented by families such as: Venu®, Vívomove®, Vívofit® Jr, etc.) and indoor cycling (such as the brand of Tacx® products). Gross margin and operating margins were 53% and 15%, respectively, resulting in operating income of $41 million. During this period, the firm has presented its smartwatch Venu® Sq 2that stands out for offering up to 11 days of battery life in smart watch mode and being able to offer a true picture of the level of well-being 24 hours a day throughout the week. To do this, it carries out a complete and detailed physiological monitoring with advanced control of sleep, stress, energy, hydration, breathing and even the menstrual cycle and pregnancy. In addition, it has more than 25 integrated sports applications and provides real-time connectivity, alerts in case of incidents and the possibility of making payments directly from it. And all this under an attractive design with a 1.4-inch rectangular AMOLED touch screen with an aluminum bezel.
Added to all this is the company holding its sixth annual developer conference, in which hundreds of developers gathered virtually to explore new and innovative ideas.
Finally, Garmin has increased its investment in R&D by 5%, which shows the importance that the multinational gives to the constant research of technologies and products aimed at improving the day-to-day life of users. In the same way, Garmin also actively collaborates and participates in both sporting and lifestyle events or with those brands that are in line with its values and philosophy, which means that users can perceive the closeness of the company through of various actions and environments.
Designed from the inside out for life outside, Garmin products have revolutionized the lives of runners, pilots, captains, golfers, cyclists, swimmers, athletes…of all levels and abilities. Committed to developing technology that helps people stay active and elevate their performance, Garmin believes that every day is an opportunity to innovate and a challenge to outperform yesterday.
For more information on the features, prices and availability of all of its products, as well as its actions and sponsorships, visit the websites https://www.garmin.com/es-ES/ , https://www.garmin.com/es-ES/ .garmin.com/es-ES/blog/ , https://twitter.com/Garmin_Iberia/ , https://www.instagram.com/garmin_iberia/ , and https://www.facebook.com/GarminIberia .
A world leader in satellite navigation, Garmin Ltd. and its subsidiaries have been designing, manufacturing, marketing and selling navigation, communication and information devices and applications since 1989, most of which integrate GPS technology. Garmin products are used in automotive, mobile telephony, wireless communication, outdoor recreation, marine, aviation and OEM applications. Garmin Ltd. is headquartered in Switzerland and its main subsidiaries are located in the United States, Taiwan, and the United Kingdom. Garmin, Tacx, Edge and Forerunner are registered trademarks and Varia, Index and Firstbeat Analytics are trademarks of Garmin Ltd. or its affiliates.a
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