Garmin Posts Steep Decline In 1Q Earnings

Excluding the effect of foreign exchange rates, Garmin said it would have earned 25 cents per share in the latest quarter.

Analysts polled by Thomson Reuters expected a profit of 42 cents per share.

Sales tumbled 34 percent to $437 million from $664 million. Analysts expected revenue of $531.6 million.

Garmin makes GPS-powered devices for drivers, pilots, boaters and outdoors enthusiasts.

Sales for its line of automotive/mobile devices, which has been its strongest market in recent years, fell 43 percent during the quarter. Sales for marine and aviation devices fell by more than 30 percent each.

Only the company's line for hikers, bikers and exercise enthusiasts showed growth, with sales increasing 13 percent.

Overall, North American sales dropped 36 percent during the quarter, while European sales were down 32 percent and Asian sales were down 33 percent.

The nuvifone, being developed with Taiwan-based Asustek Computer Inc., is seen as crucial for Garmin. Cell phones with location-based services, such as turn-by-turn driving directions, traffic warnings or search engines for nearby restaurants and stores, are cutting into the market for dedicated navigational devices.