Trimble’s Earnings Surge, Aided By PeopleNet, TMW
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Trimble Navigation Ltd., the parent company of PeopleNet Communications Corp. and TMW Systems Inc., said its third-quarter profit nearly doubled from last year.
Trimble, which provides GPS and other technologies to a variety of industries, said its net income jumped 91% to $53.4 million, or 42 cents per share, from $28 million, or 22 cents per share, a year ago.
Revenue climbed 21% to $504.8 million, the company said.
Trimble, Sunnyvale, Calif., completed its acquisition of TMW, the trucking industry’s largest transportation management software provider, on Oct. 2 for about $334 million. Trimble acquired onboard communications provider PeopleNet in August 2011.
Operating income for the company’s Mobile Solutions segment, which includes PeopleNet and TMW, jumped to $8.2 million in the third quarter, up from $2.5 million a year ago. The segment’s revenue grew 44% from a year ago to $83.8 million on higher subscription revenue and the results of acquisitions, Trimble said.
“The Mobile Solutions segment continues to make a major contribution to the year-to-year improvement in Trimble quarterly results,” Steven Berglund, Trimble’s CEO, said in a conference call.
He said the segment’s gain in year-over-year profitability “continues to be dominated by the PeopleNet acquisition.”
“The recent TMW acquisition is expected to continue to trend towards a richer financial model, once the initial purchase accounting effects dissipate in early 2013,” Berglund added.
In a separate announcement, Trimble said it has signed a distribution agreement with Advantage PressurePro, Harrisonville, Mo., to provide tire-pressure monitoring for the construction market.
Under the agreement, Trimble will combine PressurePro’s tire- pressure monitoring technology with its VisionLink asset and site productivity management software for construction contractors, along with other Trimble commercial fleet management products.
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