Business news : Switzerland, Garmin Reports Strong Second Quarter 2013 Results and Maintains Full Year Outlook

Garmin Ltd. (Nasdaq: GRMN – News) today announced results for the fiscal quarter ended June 29, 2013.

Highlights in the quarter include:

Total revenue of $697 million in second quarter 2013 with traditional segments of outdoor, fitness,  aviation and marine delivering 51% of  total  revenues and growing 8% over the year ago quarter

Operating margin of 24% with 64% of operating profit from  traditional segments

Continued to gain global market share in the PND industry

Introduced the Monterra™, an Android™ powered outdoor GPS, supporting 3rd party  applications for  outdoor professionals and enthusiasts

Announced the expansion of our relationships with Volkswagen and MINI, providing factory-or dealer-installed solutions for the compact car market

Generated $ 186 million of free cash flow in second quarter 2013

Executive Overview from Cliff Pemble, President and Chief Executive Officer:

“The second quarter of 2013 was highlighted by stronger than expected revenue performance across all segments,” said Cliff Pemble, president and chief executive officer of Garmin Ltd.

“We were particularly pleased to generate revenue growth in each of our traditional markets.

While our performance was strong in second quarter and we believe that the outlook for growth in 2013 for the traditional markets is positive, we also anticipate that declines in the PND market will continue to be a significant headwind.Third quarter will be particularly challenging as we compare against a period of strong prior year sell in driven by the timing of new product introductions and end-of-life promotions.Given these factors, we are maintaining our full year revenue and EPS guidance. Longer term, our primary focus remains innovation that is expected to fuel sustained revenue and EPS growth.”

Outdoor:

The outdoor segment posted revenue growth of 6% in the quarter with our golf and dog tracking and training portfolios driving growth. Gross and operating margins within the segment remained strong at 66% and 42%, respectively. During the quarter, we introduced our latest outdoor handheld, the Monterra. This product is Android powered giving the user access to thousands of applications including those targeting outdoor enthusiasts. In addition, the Monterra includes WiFiconnectivity, an FM radio and NOAA weather radio.

Fitness:

The fitness segment posted revenue growth of 3% in the quarter as our latest cycling products, the Edge®510 and 810, and the Forerunner® 10 sold well. While gross and operating margins were consistent with our expectations at 65% and 35%, respectively, this is a decline from the prior year due to the product mix shifting toward lower priced devices. In the second half of 2013, we anticipate delivering a number of new products to the market, including the Vector power meter, which are expected to accelerate revenue growth.

By press release