STAMFORD, CT – Harman International Industries, Incorporated, the leading
global audio and infotainment group (NYSE: HAR), today announced results for the
fourth quarter and fiscal year ended June 30, 2012. In a separate release, the
Company updated its fiscal 2013 guidance for foreign currency changes; on a
constant currency basis, the Company confirmed its previous guidance.
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.”
Additional Resources:HARMAN (
www.harman.com) designs, manufactures and markets a wide range of audio and infotainment solutions for the automotive, consumer and professional markets — supported by 15 leading brands, including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon® and Mark Levinson®. The Company is admired by audiophiles across multiple generations and supports leading professional entertainers and the venues where they perform. More than 25 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of about 13,400 people across the Americas, Europe and Asia, and reported net sales of $4.4 billion for the twelve months ending June 30, 2012. The Company's shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.
