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UPDATE 2-TomTom Q2 shipments, prices up less than expected

Published 07/01/2009, 10:42 AM
Updated 07/01/2009, 10:49 AM
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* EBIT level in line with market expectations

* Says outlook for 2009 remains challenging

* Schedules rights issue for July 2

* TomTom shares down 1.1 percent, underperforming main index

(Adds Reuters poll, background, update shares)

AMSTERDAM, July 1 (Reuters) - Dutch navigation device maker TomTom said on Wednesday shipments and average selling prices increased in the second quarter compared with the first but by less than expected, due to weak economies.

TomTom also said its gross margin remained strong in the second quarter and it felt comfortable that earnings before interest and tax (EBIT) were in line with market expectations.

TomTom gave no details of second quarter sales but the company sold 1.4 million personal navigation devices (PNDs) in the first quarter and 3.1 million in the second quarter last year.

Analysts expects TomTom to have sold 2.5 million in the second quarter and 10.2 million in 2009, according to the average in a Reuters poll..

"Our outlook for 2009 remains challenging in light of low consumer spending," TomTom said in a statement.

TomTom has guided for between PND sales of 11 to 12 million in 2009, producing revenue between 1.4 to 1.6 billion euros.

Average selling price levels were expected to be 109.6 euros up, from 99 euros in the first quarter but down 16 percent from 131 euros during the second quarter of 2008, according to the poll.

TomTom also scheduled the planned 359 million euro ($507 million) rights offering aimed at reducing debt for July 2.

The firm, which makes portable navigation devices for cars and mapping software for handheld computers, said on Tuesday its shareholders had approved plans for the rights issue, which it plans to price at 4.21 euros per share.

Shares in TomTom were up 0.18 percent at 8.58 euros as of 1440 GMT, compared with a 2.14 percent rise in Amsterdam's blue chip index.

TomTom, which competes with U.S. rival Garmin Ltd, has struggled under a 1.16 billion euro debt from its purchase of Dutch digital map maker Tele Atlas for 2.9 billion euros last year. ($1=.7077 Euro) (Reporting by Harro ten Wolde and Catherine Hornby; Editing by Hans Peters and David Cowell)

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