TomTom Profit Down 48 Percent In Q3

AMSTERDAM (AP) — TomTom NV, the Dutch maker of navigation devices, reported Wednesday a 48 percent fall in net profit for the third quarter, due largely to price cuts to attract buyers amid the economic downturn.

Net profit was euro31 million ($46.11 million), down from euro58 million in the same period a year ago, but up slightly from the previous quarter. Sales fell 15 percent on the year to euro365 million.

The company issued new shares in July to ease an unmanageable debt burden, so diluted earnings per share were down more sharply, 63 percent, to euro0.14 per share.

TomTom is the largest maker of GPS devices for cars, but is smaller overall than top rival Garmin Ltd. of the Cayman Islands.

Chief Executive Harold Goddijn said in a statement the third quarter earnings showed the company is now firmly profitable, in part due to cost-cutting.

The company said it doesn't see consumer demand for navigation devices worsening.