Garmin posts lower 2nd-quarter net income on currency losses, reincorporation expense

Garmin 2Q net income falls on currency, expenses

NEW YORK — Navigation device maker Garmin Ltd. said Wednesday its second-quarter net income declined due to currency exchange losses and higher expenses mainly from the company moving its incorporation to Switzerland from the Cayman Islands.

For the three months ended June 26, the company earned $134.8 million, or 67 cents per share, down 17 percent from $161.9 million, or 81 cents per share, in the same period a year earlier.

Adjusted earnings were 85 cents per share in the latest quarter. This excludes the effect of foreign currency translation losses and other items.

Revenue rose 9 percent to $728.8 million from $669.1 million.

Analysts, on average, were expecting a profit of 73 cents per share on revenue of $676.9 million, according to a poll by Thomson Reuters.

All of Garmin’s segments had an increase in revenue during the quarter, with the company’s outdoor and fitness business a standout. Revenue in the unit, which makes products like sports watches and GPS devices for use while participating in outdoor activities, grew 32 percent to $143 million. Revenue at Garmin’s automotive and mobile segment rose 2 percent to $447 million. Its marine segment had a 23 percent revenue increase to $74 million and revenue in its aviation unit inched up 1 percent to $65 million.

Garmin forecast full-year adjusted earnings of $2.75 to $3.15 per share on revenue of $2.8 to $3 billion.

Analysts expect earnings of $2.91 per share on revenue of $2.88 billion.