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Garmin CEO: Nearly Every Business Segment Is Growing

Jayson Derrick

Garmin Ltd. (NASDAQ: GRMN)'s third quarter showed momentum across four of its five segments, CEO Cliff Pemble said in a Fox Business interview.

What Happened

Garmin reported a 15% year-over-year increase in revenue as the aviation, fitness, outdoor and marine business units collectively grew at a double-digit rate, Pemble said.

The fitness category remains very competitive, and Garmin stands out by offering different devices to satisfy varying needs and styles, he said.

For example, Garmin sells a watch tailored to golfers with built-in data on tens of thousands of courses.

Another example: Garmin's partnership with KU Medical Center to test its wearable devices to diagnose and monitor heart conditions.

Garmin's Autoland helps pilots land their aircraft in the event a pilot is unable to do so.

"We are a company that builds on niches so we are able to create a very meaningful business on incrementals," the CEO said.

Fitbit Chatter

Garmin's earnings release immediately followed media reports that rival Fitbit Inc (NYSE: FIT) is potentially for sale.

The CEO said Garmin has always viewed itself as a standalone company with a structure built for growth, and it hasn't engaged in any takeover talks.

Garmin already boasts a large enough scale in its business, including $3.5 billion in sales and seven factories worldwide that facilitates shipment of 15 million units a year, Pemble said. 

"Our scale is actually very significant."

Garmin shares were down 3.22% at $93.25 at the time of publication. 

Related Links:

A Closer Look At Insider Sales By Garmin's Chairman

3 Reasons Fitbit Could Be An Attractive M&A Target

Photo courtesy of Garmin. 

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