NAVTEQ annouces record turnover

In the months July, August and September 2006, the turnover of the US supplier of map data increased to $ 142.7 million.

With these figures, they continue the trend of ever increasing turnover records. Compared to the third quarter of 2005, the turnover rose 16%. However, when it comes to pure profit NAVTEQ's figures are way down. Because they had a huge tax break of $ 80.6 million in 2005, the Q3 result in 2005 was no less than 101.1 million.

Judson Green, president and CEO of NAVTEQ is thrilled with these results: "Considering the major challenges we had to tackle this year, we are very pleased. The great results in the last quarter and the cost-reducing measures we have taken has made our margins bigger and our profit increase. We expect to continue this trend for the rest of the year."

Negative

Still, all that glitters is not gold at NAVTEQ. Despite the record-turnover this year, there are a also a few negative factors which are influencing the results. NAVTEQ has sold less PND licences to Europe than they had expected. One possible cause for this could be the disappointing sales figures of Garmin PNDs in Europe, for which NAVTEQ supplies the map data. Another reason would be the disappointing car-sales-figures in North-America and Europe and a few rebate promotions that were organised.

Downwards

All these factors have made the NAVTEQ management adjust their turnover-expectancy to a lower figure. Instead of the expected $ 590 to $ 615 million, they now expect to reach a turnover of $ 565 to $ 580 million. In the first nine months of 2006, $ 400.9 million ended up in NAVTEQ's till. This is a growth of 14 % compared to the same period in 2005, but still it seems it's not enough to reach the original goals that NAVTEQ management had set for 2006.