Summary
Garmin Ltd. reported net sales of $2.72 billion for the fiscal year ended December 29, 2012, a slight decrease of 2% compared to the prior year. The company experienced a notable decline in its Automotive/Mobile segment, down 6%, reflecting market saturation and competition from mobile devices and factory-installed systems. However, this was partially offset by growth in the Outdoor (up 11%) and Fitness (up 8%) segments, driven by new product introductions and market share gains. The Aviation segment also saw a modest 2% increase. Gross profit increased by 7% to $1.44 billion, and gross profit margin improved by 450 basis points to 53%, largely due to a favorable product mix, reduced component costs, and the amortization of previously deferred revenues. Operating income increased by 9% to $604 million. Despite the overall revenue dip, Garmin demonstrated strong operational management and innovation, particularly in its higher-margin segments, positioning it for continued development in specialized markets.
Financial Highlights
52 data points| Revenue | $2.72B |
| Cost of Revenue | $1.28B |
| Gross Profit | $1.44B |
| R&D Expenses | $325.77M |
| SG&A Expenses | $369.79M |
| Operating Expenses | $834.32M |
| Operating Income | $604.16M |
| Net Income | $542.40M |
| EPS (Basic) | $2.78 |
| EPS (Diluted) | $2.76 |
| Shares Outstanding (Basic) | 195K |
| Shares Outstanding (Diluted) | 196K |
Key Highlights
- 1Net sales for fiscal year 2012 were $2.72 billion, a 2% decrease from 2011.
- 2The Automotive/Mobile segment, Garmin's largest, saw a 6% decline in revenue, indicating market maturity and competitive pressures.
- 3Outdoor and Fitness segments showed strong growth at 11% and 8% respectively, driven by new products and market penetration.
- 4Gross profit increased by 7% to $1.44 billion, with gross profit margin improving significantly by 450 basis points to 53%.
- 5Operating income grew by 9% to $604 million, reflecting improved profitability across key segments.
- 6Research and Development expenses increased by 9% to $326 million, highlighting continued investment in product innovation.
- 7Garmin declared and paid a quarterly cash dividend of $0.45 per share throughout 2012, indicating a commitment to returning capital to shareholders.