TomTom Q2 in line with forecasts

AMSTERDAM, THE NETHERLANDS: Dutch navigation device maker TomTom on Wednesday kept its full-year outlook and warned that a stronger dollar would hurt margins after reporter quarterly net profit and revenue in line with forecasts.

TomTom, which makes portable navigation devices (PNDs) for cars and mapping software for handheld computers, said second quarter net profit rose 69 percent to 34 million euros ($44 million) from a year earlier, while revenue was down 2 percent, in line with average expectations.

TomTom kept its 2010 outlook for flat revenue and earnings per share from 2009, when revenue was 1.48 billion euros and earnings per share at 0.47 euro.

"Group revenue will be weighted towards the second half of the year and particularly to the fourth quarter as in previous years," Chief Executive Harold Goddijn said in a statement.

He added the stronger dollar was negatively impacting margins and that this would be more evident in the third quarter.

TomTom's business model and that of its main competitor, Garmin, have come under pressure since Google and Nokia started offering free turn-by-turn navigation on smartphones this year.