TomTom reports profits slump as car sales slow
TomTom's net income fell from €22m last year to just €11m in the third quarter while turnover dropped from €274m to €244m.
Chief executive Harold Goddijn said that despite making inroads in the automotive market the firm's revenue is affected by ongoing low car sales.
The Amsterdam-based group recently signed a deal with Ford for a future navigation system that will connect to the car manufacturer's dashboard multimedia system.
Last month it started incorporating a navigation application into Japanese electronics company Sony's second-generation of dashboard information and entertainment systems.
The company said that it lost business because it had to compete with a trend to use navigation applications installed in mobile phones. TomTom said, however, it was on target to achieve a turnover of between €900m and €950m.
Earlier this year TomTom announced it was diversifying its line and had introduced a new GPS multifunction sports watch while sprucing up its existing navigation products with interactive 3D maps.
The watch features the latest Bluetooth technology and a simple one-button control. It is waterproof up to 50m and can be used by runners, cyclists and swimmers.
TomTom employs more than 3,500 people and its maps cover 102 countries.
Source: AFP via I-Net Bridge