- Q4 EPS on non GAAP basis up 100% to $0.67; Full Year non GAAP EPS up 41% to $2.93
- Eleventh consecutive quarter of year-over-year improvement in sales and earnings
- General Motors awards $900 million infotainment business
- BRIC Markets continue to lead sales growth; driven by 42% increase in China
- Executed on share buy-back program and announced doubling of annual dividend
Net sales for the fiscal year were $4.4 billion, an increase of 16 percent compared to the prior year. In local currency, net sales increased by 17 percent. On a GAAP basis, operating profit increased by 58 percent to $300 million compared to $190 million in the prior year. Excluding restructuring expenses, annual operating profit was $310 million, an increase of 47 percent compared to $211 million in the prior year. On a non-GAAP basis, earnings per diluted share were $2.93 for the year, an increase of 41 percent versus $2.08 reported in the prior year. On a GAAP basis, which includes the benefit from a tax asset valuation allowance release, earnings per diluted share were $4.57 for the year compared to $1.90 in the prior year.
Net sales for the fourth quarter were $1,091 million, an increase of 6 percent compared to the same period last year. In local currency, net sales increased by 14 percent. Fourth quarter operating income was $71 million, compared to $26 million in the same period last year. Excluding restructuring charges, operating profit in the fourth quarter grew by 101 percent to $70 million, compared to $35 million in the same period last year. On a non-GAAP basis, earnings per diluted share were $0.67 for the quarter compared to $0.34 in the same period last year. On a GAAP basis, earnings per diluted share were $0.69 for the quarter compared to $0.26 in the same period last year. The Company further noted $0.02 negative impact of currency on EPS which was offset by the positive benefit of share buyback activity during the quarter.
Harman Chairman, President and CEO Dinesh Paliwal said, "We had a terrific year! Our full year and fourth quarter results reflect double digit top- and bottom-line growth which helped us deliver a 41% increase in earnings per share. Although the macroeconomic environment remains uncertain, we are cautiously optimistic and continue to focus on growth, cost management and productivity initiatives aimed at expanding our operating margins and we are making the critical investments necessary to sustain our profitable growth for the future.”
Paliwal added, “Our innovation emphasis drove an increase of 37 percent in our new patents and patents filings this past year. These ongoing investments in technology, our strong pipeline of new products, our luxury brands and the expansion of our channels globally position us for healthy secular growth. We are on the forefront of developing connected car technologies with a focus on active driver safety. We successfully collaborate and integrate technologies from Google, Apple, Microsoft and others. We concur with automakers that embedded infotainment system penetration will continue to grow rapidly and it will be complimented by smart mobile devices. Our recent record order wins for the embedded infotainment systems confirm our strategy and business model."
“We continue to win new infotainment and car audio orders both in the US and abroad as 28 percent of our record high order backlog of $16 billion represents new business including new customers like GM, Tata, Geely and BAIC. With strong growth in BRIC markets led by China up 42%, our sales are well diversified globally,” said Paliwal.
“We are highly focused on shareholder value creation, through organic growth, strategic acquisitions and directly through our dividend and share buyback programs,” noted Paliwal. “We have worked hard to build a strong balance sheet that facilitates all of these strategies. In the last quarter, we took advantage of market opportunity to repurchase our stock and announced the doubling of our dividend.”