* Cuts 2012 revenue outlook on weak European auto demand
* Q3 Consumer PND revenues -24 pct, Automotive -16 pct
* Q3 net profit 22 mln euros vs 12.3 mln euros forecast
(Adds company, analyst comment, details)
By Roberta Cowan
AMSTERDAM, Oct 30 TomTom trimmed its
full-year revenue forecast on Tuesday, citing falling sales of
its built-in car navigation devices in Europe.
Europe's largest navigation device maker and one of the top
three digital map makers globally is trying to increase sales of
its navigation gadgets and services to carmakers to offset the
declining popularity of personal sat-navs.
But the European car market has been shrinking as a result
of the region's debt crisis, with sales in September falling at
their fastest pace in the last 12 months as government spending
cuts bite and unemployment rises.
TomTom said on Tuesday it now expected 2012 revenue to be
around 1.05 billion euros ($1.4 billion), down from an earlier
forecast of 1.10 billion euros.
"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.
TomTom's customers including PSA Peugot Citroen,
Renault, Fiat, have suffered some of the
biggest declines in car sales in Europe.
TomTom reported a 23 percent fall in third-quarter net
profit to 22 million euros, beating forecasts as the company cut
SNS Securities analyst Martijn den Drijver said TomTom's car
division was hit more than he expected due to much lower sales
at Renault and Fiat, combined with new contract extensions not
yet contributing to revenue.
Group revenue fell 19 percent from the same period last
year, with a 24 percent fall at the consumer unit and a 16
percent drop at the automotive division.
TomTom shares have fallen from a record high of 56 euros in
2007 to 3.9 euros as smartphones with cheap or free navigation
software hurts demand for its personal navigation devices.
Goddijn declined to give any outlook for PNDs or for the
automotive sector next year and also declined to comment about
recent problems raised by Apple customers about the quality of
Apple's latest app for maps.
TomTom competes in the PND market with Garmin and
in the commercial digital map market with Google and
($1 = 0.7749 euros)
(Additional reporting by Laurence Frost in Paris; Editing by