Saturday, November 3, 2012

TomToms Q3 net profit falls 23percent, cuts full year revenue forecast


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.

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