Garmin Ltd.s Outdoor/Fitness segment took a hit in the second quarter of 2009 as the segments quarterly sales declined for the first time in more than two years. The company reported second quarter earnings slid 36% to $161.9 million, or 81 cents a share, from $256.1 million, or $1.19, a year ago. The company reported total revenue of $669.1 million, down 27% from $911.7 million in second quarter 2008. The Outdoor/Fitness segment revenue decreased 9%.
By region, North America revenue was down 24% from last year to $436 million and $576 million, respectively. Europe revenue $198 million, down 36% compared to $307 million in the same quarter in 2008. Asia revenue was $35 million, up 21% from $29 million.
The company reported gross margins improved to 52.6% compared to 45.8% in the second quarter 2008. Operating margins were up to 29.8% compared to 26.2% in second quarter of 2008.
Diluted earnings per share decreased 32% to 81 cents per share from $1.19 in second quarter 2008. Pro forma EPS decreased 12% to $0.83 from 94 cents in the same quarter in 2008.
The company generated $246 million of free cash flow in the second quarter for a cash and marketable securities balance of over $1.5 billion.
