Business

TomTom profits hit by weak dollar

TomTom navigation
Image caption TomTom is gaining market share in both Europe and the US

Profits at the Dutch navigation systems maker TomTom have been reduced by the recent fall in the US dollar.

The company said it had gained market share in both key markets of Europe and the US.

However, net profits fell 37% in the third quarter of the year to 19m euros ($26.3m; £16.7m).

As the company reports profits in euros, any dollar profits need to be converted back into that currency. A weak dollar buys fewer euros.

Group sales rose 3% to 375m euros in the three months to September.

TomTom is the largest maker of navigation equipment in Europe, and although it trails Garmin in the US, it is making inroads there.

"Our business solutions unit continues to deliver strong increases in subscriber numbers," said chief executive Harold Goddijn.

"We are focused on broadening our revenue base and on rolling out high quality content and services to our customers."

He added he was pleased with the progress being made.

Just over a year ago TomTom was forced to issue new stock to raise cash after struggling with high debts following the purchase of digital map maker Tele Atlas for 2.9bn euros.

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