- Ninth consecutive quarter of year-over-year improvement; all divisions post higher sales, operating margins
- BRIC countries sales increase 32%; China sales increase 44%
- Infotainment sales increase 20% and operating margin improves to 8.3%
- Lifestyle sales increase 20% and operating margin improves to 12.6%
STAMFORD, CT, February 7, 2012 – Harman International Industries, Incorporated, the leading global audio and infotainment group (NYSE: HAR), today announced results for the second quarter ended December 31, 2011.
Net sales for the second quarter were $1,127 million, an increase of 18 percent compared to the same period last year. Excluding foreign currency translation, net sales increased by 19 percent. Second quarter operating income was $95 million, compared to $68 million in the same period last year. Excluding restructuring charges, operating profit in the second quarter grew by 32 percent to $96 million, compared to $73 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $0.83 for the quarter compared to $0.79 in the same period last year. On a GAAP basis, earnings per diluted share were $0.82 for the quarter compared to $0.74 in the same period last year.
During this quarter, all three of the Company’s divisions reported higher sales and operating margins. The operating margin improvement was primarily driven by leveraging higher sales volume on a lower and more efficient cost base.
At December 31, 2011, the Company’s cash and short term investments balance was $769 million, compared to $690 million as of September 30, 2011. This change was primarily driven by $123 million of cash generated by operations.
Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, "We are earning trust with key stakeholders by delivering sound financial returns, by investing in bringing new innovation to market and by gaining share from our competitors. With over 4000 patents and patents pending, we believe our accelerated pace of innovation is a key driver of our continued profitable growth. Our hard work to optimize our footprint has led to a lower cost base, and combined with global supply chain management has allowed us to deliver nine consecutive quarters of year-over-year improvement in sales and earnings. With our current production footprint in emerging markets, we have the flexibility and scalability to meet our future growth targets while maximizing our return on invested capital."