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HARMAN Reports Double-Digit Sales Growth and 5.6 Percentage Point Improvement in Operating Margin

  • Net sales increase 19% in local currency
  • Credit rating upgraded two notches by both Moody’s and Standard & Poor’s
  • Acquired Aha Mobile to enable on-demand internet content for cars and consumer devices
  • Investing additional $100M in China; two new factories, R&D and test labs to be added by summer 2011

Stamford, CT, November 2, 2010 – Harman International Industries, Incorporated, the leading global audio and infotainment group (NYSE: HAR), today announced results for the first quarter ended September 30, 2010.  Net sales for the quarter were $837 million, an increase of 12 percent compared to the same period last year.  In local currency, net sales increased by 19 percent.  First quarter operating income was $43 million, an improvement of $47 million versus a prior year loss.  Earnings from continuing operations per diluted share were $0.39 for the quarter compared to a loss per diluted share of ($0.17) in the same period last year. On a non-GAAP basis, earnings from continuing operations were $0.35 compared to a loss of ($0.08) in the same period last year.

“We are very pleased by this continued progress, marking four consecutive quarters of year-on-year improvement in both top line and profitability,” said Dinesh C. Paliwal, the Company’s Chairman, President and CEO.  “Our innovation pipeline and our $12 billion backlog of awarded business reinforce HARMAN’s leadership position.  Our successful STEP Change cost reduction program and emerging markets footprint expansion are yielding both cost advantages and new market opportunities. Our recent two-notch credit upgrades reflect our strong balance sheet, new business awards, permanent cost reductions and improved conditions in our served markets.”  

“During the last three years, we have transformed the Company’s global footprint, created a best in class cost structure and installed world class business processes,” Paliwal added. “Harman is now focusing on profitable growth, both organic and through acquisitions. After posting triple digit growth in emerging markets last year, we are adding significant new capacity to meet the rising domestic demand in China and other emerging markets. We have a strong balance sheet and we are generating positive cash flow. Our recent acquisitions of Selenium in Brazil and Aha Mobile in the US are having a positive impact. We will continue to look for companies in both western and emerging markets which have attractive valuations, key technologies, and strong sales channels.”

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