News
Skip Navigation Links.
Harman Reports Significant Net Income Improvement on Stronger Sales 

08-February-2010 

HARMAN INTERNATIONAL REPORTS SIGNIFICANT NET INCOME IMPROVEMENT ON STRONGER SALES

·   Sales and margins higher on successful execution of innovation and cost-reduction programs

·   Positive cash from operations and solid cash position allows repayment of credit revolver balance

·   Harman will announce mid-term targets (FY 2013) at an investor and analyst day on April 29, 2010

Stamford, CT, February 8, 2010 – Harman International Industries, Incorporated (NYSE: HAR) today announced results for the Second Quarter FY 2010 ending December 31, 2009.  Net sales for the quarter were $937 million, an increase of 24 percent compared to the same period last year.  Excluding foreign currency translation, net sales increased by 15 percent.  Sequentially, sales increased 24 percent compared to the previous quarter. Excluding non-recurring items, the second quarter generated a non-GAAP operating profit of $53 million, compared to a non-GAAP operating loss of ($16) million for the same period last year.  On the same non-GAAP basis, earnings per diluted share were $0.40 for the quarter compared to a loss per diluted share of ($0.21) for the same period last year. On a GAAP basis, earnings per diluted share were $0.23 for the quarter compared to a loss per diluted share of ($5.45) during the same period last year. 

We are encouraged by the double-digit sales increase from the same period a year ago and by the fact that we are delivering this improvement to the earnings line,” said Dinesh C. Paliwal, the Company’s Chairman, President and CEO.  “Our continued drive for innovation, productivity improvement and permanent cost savings under our STEP Change program has become part of our culture, and these will enable Harman to execute more profitably on its large portfolio of awarded business. With our technology leadership, we are gaining market share in our Automotive Division, and our customers continue to reward us with new orders. Our note holders have recently shown an additional vote of confidence by amending a debt covenant that now allows us to revolve our credit facility.  By paying down the revolver, we will reduce interest costs while maintaining the flexibility to adjust our cash position as necessary.”

FY 2010 Key Figures – Total Company

Three Months Ended December 31

Six Months Ended December 31

 

 

 

Increase (Decrease)

 

 

Increase (Decrease)

$ millions (except per share data)

Q2

FY10

Q2

FY09

Including Currency Changes

Excluding Currency Changes2

1H
 FY10

1H

FY09

Including Currency Changes

Excluding Currency
Changes2

Net sales

937

756

24%

15%

1,695

1,625

4%

2%

Gross profit

259

177

46%

36%

458

419

10%

7%

    Percent of net sales

27.6%

23.4%

 

 

27.0%

25.8%

 

 

Operating income (loss)

39

(367)

n.m.

n.m.

38

(334)

n.m.

n.m.

Percent of net sales

4.2%

(48.5%)

 

 

2.2%

(20.6%)

 

 

Net Income (loss)

16

(319)

n.m.

n.m.

7

(298)

n.m.

n.m.

Diluted earnings (loss) per share

0.23

(5.45)

 

 

0.09

(5.09)

 

 

Restructuring-related costs

4

25

 

 

8

36

 

 

Goodwill impairment charge

9

325

 

 

12

325

 

 

Non-GAAP

 

 

 

 

 

 

 

 

Gross profit1

262

179

46%

36%

462

427

8%

6%

    Percent of net sales1

27.9%

23.7%

 

 

27.2%

26.3%

 

 

Operating income (loss)1

53

(16)

n.m.

n.m.

58

27

115%

95%

Percent of net sales1

5.6%

(2.1%)

 

 

3.4%

1.7%

 

 

Net Income (loss)1

28

(13)

n.m.

n.m.

25

15

61%

28%

Diluted earnings (loss) per share1 

0.40

(0.21)

 

 

0.35

0.26

 

 

Shares outstanding - diluted (in millions)

71

59

 

 

71

59

 

 

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

Download Full Press Release (PDF)

Download Slide Presentation (PDF)

 

Read more Articles »