• Tenth consecutive quarter of year-over-year improvement; all divisions post higher sales
• Largest ever $2 Billion infotainment order from a leading automaker
• Largest ever $500M orders for infotainment and audio with Chinese and Indian automakers
• Release of a deferred tax asset valuation allowance increases EPS by $1.71 to $2.38
STAMFORD, CT, April 30, 2012 – Harman International Industries, Incorporated, the leading global audio and infotainment group (NYSE: HAR), today announced results for the third quarter ended March 31, 2012.
Net sales for the third quarter were $1,096 million, an increase of 16 percent compared to the same period last year. In local currency, net sales increased by 19 percent. Third quarter operating income was $60 million, compared to $54 million in the same period last year. Excluding restructuring charges, operating profit in the third quarter grew by 7 percent to $67 million, compared to $63 million in the same period last year. On a GAAP basis, earnings per diluted share were $2.38 for the quarter compared to $0.51 in the same period last year. Excluding the deferred tax asset valuation calculation, earnings per diluted share would have been $0.67. Excluding restructuring charges and the benefit from a tax asset valuation allowance release, compared to $0.60 in the same period last year, non-GAAP earnings per diluted share were $0.74 for the quarter.
Excluding the one-time gain from the sale of intellectual property in the same period last year, operating margin during the quarter improved by 120 basis points on a non-GAAP basis. Last year’s EPS of $0.60 included a one-time benefit of $0.17 from the sale of intellectual property.
“Our relentless focus on innovation and execution has earned us ten straight quarters of profitable growth,” said Dinesh C. Paliwal, the Company’s Chairman, President and CEO. “The luxury car segment we serve has been highly resilient and has outpaced the overall automotive market, and we continue to gain market share. Due to our technology leadership and our strong innovation pipeline, a leading automaker has selected Harman for an infotainment award worth more than $2 billion. It is the largest award ever for Harman. Our successful expansion into the mid-segment with our scalable platform has captured additional growth opportunities. To expand our market, we have invested smartly in high-growth BRIC countries, setting up five new manufacturing and engineering centers. With five hundred million dollars of new orders in India and China, we are on track to more than double our BRIC sales in three years and achieve our $1.5 billion sales target by 2015.”
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