Solid 2017 results in marine electronics
FLIR and Garmin maintain sales growth in marine electronics equipment.
Marine electronics manufacturers FLIR and Garmin both reported solid financial results for the year ending 2017 with the marine equipment sectors once again showing good sales growth (all figures in USD).
FLIR Systems, which specialises in the manufacture of thermal imaging cameras as well as the Raymarine range of boating and fishing electronics, recorded full year revenue of $1.8 billion, an 8% increase on the $1.66 billion revenue for 2016. The company said that organic revenue growth was 2% with prior year acquisitions contributing approximately 6% of growth.
Revenue from the maritime segment, which includes both thermal cameras and the Raymarine brand, was $189.7 million, an increase of 2% on the prior year. Adjusted operating income grew 24% from $18.6 million to $23 million.
The maritime sector delivered its strongest results in the fourth quarter of 2017 with revenue increasing by 14.5% compared to the previous year's fourth quarter, a result which FLIR described as the highest growth since its acquisition of Raymarine in 2010. This was due to strong sales of Raymarine's Axiom multi-function displays as well as growth in thermal cameras, echo sounders and radars.
“We are pleased with our fourth quarter results, particularly the revenue growth and double-digit adjusted earnings growth,” said Jim Cannon, president and CEO. “We reached our highest quarterly adjusted operating margin since 2012, finishing a year that saw record levels of revenue and adjusted earnings per share.
“This was accomplished during a year of transition that included an operational realignment, changes to the management team, and portfolio rationalisation that resulted in the divestment of our Lorex security business. I am proud of our employees and how they have delivered in 2017.”
Garmin recorded total revenue of $3.1 billion for 2017, a increase of 2% over the previous year, driven by its outdoor, fitness, marine and aviation segments collectively growing 9% over the prior year.
“2017 was our second full year of sales and operating income growth driven by strong sales in our outdoor, aviation and marine segments,” said Cliff Pemble, president and CEO. “Entering 2018, we see additional growth opportunities ahead and we believe that we are well positioned to seize these opportunities with a strong line-up of products.”
The marine segment saw revenue growth of 13% during 2017 driven by growth in chartplotters, fishfinders and contributions from the company's acquisition of the Navionics charting software.
During the fourth quarter of 2017, while the marine segment achieved strong revenue growth of 24%, it actually made an operating loss of 13% due to what the company described as a one-time “litigation settlement”.
