Garmin 1Q profit rises, misses analysts' expectations

NEW YORK—Garmin Ltd. said Wednesday its first-quarter earnings rose as demand for its automotive and mobile products stayed strong beyond the holiday season, but the personal navigation device maker's profit missed analysts' estimates.

Garmin shares fell $3.64, or 7.8 percent, to $42.80 in premarket trading.

For the quarter that ended March 29, Garmin earned $147.8 million, or 67 cents per share, compared with $139.9 million, or 64 cents per share, in the same quarter last year. Excluding the impact of foreign exchange, Garmin earned 69 cents per share.

The company's sales rose year over year to $663.8 million from $492.2 million.

Analysts polled by Thomson Financial expected earnings of 75 cents per share on $705.1 million in revenue. The estimates typically exclude one-time items.

Garmin said that for the 13 weeks that ended on March 29, sales in its automotive and mobile segment rose $135.2 million, or 42.7 percent, to $451.9 million.

The company's aviation sales rose $13.4 million, or 18.7 percent, to $85.4 million.

By region, Garmin said its North America revenue rose 27 percent to $411 million, while Europe revenue rose 43 percent to $211 million. Revenue in Asia doubled, totaling $42 million in the first quarter.

In a statement, the company said that though it is happy with its quarterly performance, "it is important to note that the global economic slowdown has impacted companies across the board." Garmin said it "will continue to monitor the economic climate closely."

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