Garmin’s Q4 sales for outdoor/fitness segment up 24 percent
As the personal navigation market becomes more crowded, Garmin (Nasdaq: GRMN) said falling prices and increased competition could hurt margins in 2010.
Garmin expects prices to decline by about 10 percent in the personal navigation device industry, putting pressure on its gross and operating margins in 2010. It also projected flat to slightly declining revenue for its core personal navigation device segment during the period. It expects 2010 adjusted earnings of $2.75 a share to $3.15 a share.
For the quarter ended Dec. 26, total revenue was $1.059 billion -- up 1 percent from $1.048 billion in the 2008 fourth quarter.
While the automotive and aviation segments reported sales decreases, the outdoor/fitness segment was up 24 percent to $812 million, and the marine unit was up 2 percent to $34 million.
North America and Asia experienced year-over-year revenue growth, while Europe declined slightly. North America revenue increased 1 percent to $768 million,
Europe was down 2 percent to $246 million and Asia was up 25 percent to $45 million.
Net income climbed to $278.4 million, or $1.38 a share, from $157.7 million, or $0.78 a share, in the year-ago period. Adjusted earnings rose to $1.43 a share, from $0.93 a share.
For the full year, total revenue in 2009 was $2.95 billion, down 16% from $3.49 billion in 2008. Net income was $703.9 million, or $3.50 per share, versus $732.8 million, or $3.48 per share, last year.
Additionally, the company’s board authorized a repurchase of up to $300 million of the company’s shares through Dec. 31, 2011.
Duofold parent anticipates 2010 earnings growth
Hanesbrands (NYSE: HBI), parent of Duofold, said it expects earnings to grow 25 percent to 35 percent this year on product demand and cost cutting.
Hanesbrands also said it could double earnings over the next three to four years, based on its growth outlook for 2010.
The company expects sales to grow 5 percent to 8 percent in 2010. Sales growth estimates are based on significant shelf-space and distribution gains and a potential rebound in consumer spending, Hanesbrands said.
For 2011 and beyond, the company said it targets annual net sales growth between 2 percent and 4 percent, while its profit growth target is between 10 percent and 20 percent.
--Compiled by Wendy Geister
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