Navigation systems and digital map maker TomTom cut its 2012 revenue target after lower demand in austerity-hit Europe hurt revenues of its flagship consumer product and built-in car navigation division.
"The European economic situation is having a significant impact on the automotive industry. We expect our automotive revenue to remain under pressure in the coming quarters," chief executive Harold Goddijn said in a statement on Tuesday.
TomTom said it now expected revenue for 2012 to be around 1.05 billion euros, down from 1.10 billion euros.
The Dutch firm has struggled for more than a year to overcome slumping demand for PNDs (personal navigation devices) used by car and truck drivers, as smartphones with cheap or free navigation software become more popular.
TomTom reported a 23 percent fall in third-quarter net profit to 22 million euros, on 274 million euros of revenues, which fell 19 percent from the same period last year, and 5 percent down from the second quarter. Group revenues were pulled down by a 24 percent fall at its consumer unit, and a 16 percent fall at its automotive unit.
Analysts polled by Reuters had forecast 57.4 percent fall in net profit to 12.3 million euros on a 15.8 percent fall in revenues to 283 million euros.
TomTom competes in the PND market with Garmin and in the commercial digital map market with Google and Nokia.