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Harman International Returns To Positive Operating Income, Excluding Non-Recurring Items 

29-October-2009 
  • Multibillion dollar new awards and emerging market activities position company for growth
  • Record new product introductions and strong innovation pipeline help gain market share
  • Strong cash position provides sound base for organic and inorganic growth opportunities

STAMFORD, CT– Harman International Industries, Incorporated (NYSE: HAR) today announced results for the First Quarter FY 2010 ending September 30, 2009.  Net sales for the quarter were $757 million, a decrease of 13 percent compared to the same period last fiscal year.  Excluding foreign currency translation, net sales declined by 10 percent.  Sequentially, sales increased 13 percent compared to the previous quarter. Excluding non-recurring items, the first quarter generated a non-GAAP operating profit of $5 million, compared to a non-GAAP operating loss of ($34) million for the previous quarter.  On the same non-GAAP basis, loss per diluted share was ($0.05) for the quarter compared to earnings of $0.47 for the same period last fiscal year. On a GAAP basis, loss per diluted share was ($0.14) for the quarter compared to earnings per share of $0.36 during the same period last fiscal year. 

“It is clear that Harman’s aggressive initiatives to optimize costs, improve productivity and drive innovation are bearing fruit,” said Dinesh C. Paliwal, the Company’s Chairman, President and CEO.  “Our key markets are stabilizing, we are gaining market share, and we posted double-digit sequential sales growth for the quarter – aided in part by various stimulus programs.  Our operating income, excluding non-recurring items, has turned positive.  Harman is recognized as a strong global company with a fast-growing footprint in the emerging markets, and major customers including BMW, Daimler and Toyota have chosen us for repeat business due to our track record of successful execution and technology leadership.  These achievements have contributed to an estimated $10 billion in total awarded business which we will deliver over several years.  Despite the continued global economic challenges, I am pleased with the major progress we have made in lowering our cost base while investing heavily in innovation.  The $400 million cost savings and operational excellence initiatives that we launched in June 2008 are ahead of target in delivering sustainable benefits.” 

 

FY 2010 Key Figures – Total Company

Three Months Ended September 30

 

 

 

Increase (Decrease)

$ millions (except per share data)

Q1 10

Q1 09

Including Currency Changes

Excluding Currency Changes2

Net sales

757

869

(13%)

(10%)

Gross profit

200

242

(18%)

(16%)

    Percent of net sales

26.3%

27.8%

 

 

Operating income (loss)

(1)

32

n.m.

n.m.

Percent of net sales

(0.2%)

3.7%

 

 

Net Income (loss)

(9)

21

n.m.

n.m.

Diluted earnings (loss) per share

(0.14)

0.36

 

 

Restructuring-related costs

4

10

 

 

Goodwill impairment charge

3

0

 

 

Non-GAAP

 

 

 

 

Gross profit1

200

248

(19%)

(18%)

    Percent of net sales1

26.4%

28.5%

 

 

Operating income (loss)1

5

43

n.m

n.m.

Percent of net sales1

0.7%

4.9%

 

 

Net Income (loss)1

(4)

28

n.m.

n.m.

Diluted earnings (loss) per share1 

(0.05)

0.47

 

 

Shares outstanding - diluted (in millions)

69

59

 

 

1,2 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.  n.m. = Not Meaningful

 
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