- Net sales increase 22% to $1.4 billion
- Operational EPS increases 38% to $1.31; operational EBITDA up 33% to $164 million
- Secures over $2 billion of new automotive awards during the quarter
- Board authorizes $500 million share repurchase program
- Confirms full year guidance for fiscal year 2015

STAMFORD, CT, October 30, 2014 – Harman International Industries, Incorporated (NYSE: HAR), the premier audio, visual, infotainment and enterprise automation group, today announced results for the first quarter ended September 30, 2014.

Net sales for the first quarter were $1.43 billion, an increase of 22 percent compared to the same period in the prior year. Infotainment net sales increased 17 percent due to expansion of recently launched platforms, stronger automotive production, and higher take rates. Lifestyle net sales grew 27 percent driven by strong demand for the Company’s home and multimedia product lines and an increase in automotive production and higher take rates in car audio. Net sales in the Professional division increased primarily as a result of the expansion of the Company’s product portfolio into video switching and enterprise automation.

On a GAAP basis, first quarter operating income was $116 million, compared to $69 million in the same period in the prior year, and earnings per diluted share were $1.18 for the quarter compared to $0.66 in the same period in the prior year. Excluding restructuring and other non-recurring items, first quarter operating income was $128 million compared to $93 million in the same period in the prior year and earnings per diluted share were $1.31 compared to $0.95.

“We are pleased that our fiscal year is off to a solid start with 22 percent top-line growth, which also resulted in EBITDA expansion. We continue to see rising take rates for an embedded connected car experience. The fundamentals of our business are intact and despite fluctuations in foreign currency rates, we are confident in our full year guidance,” said Dinesh C. Paliwal, the Company’s Chairman, President and Chief Executive Officer. “Looking further out, demand from automakers for innovative embedded infotainment and car audio solutions remains robust as evidenced by over $2 billion of new automotive awards that we secured in the first quarter of this fiscal year. These proof points give us the confidence to put in place a three year $500 million share buy-back program.”

FY 2015 Key Figures – Total Company

Three Months Ended September 30





Increase (Decrease)

$ millions (except per share data)

3M FY15

3M FY14

Including Currency Changes

Excluding Currency Changes1

Net sales

1,429

1,172

22%

22%

Gross profit

415

322

29%

29%

Percent of net sales

29.0%

27.4%

SG&A

299

252

18%

19%

Operating income

116

69

67%

68%

Percent of net sales

8.1%

5.9%

EBITDA

153

101

52%

52%

Percent of net sales

10.7%

8.6%

Net Income attributable to HARMAN International Industries, Incorporated

83

46

79%

82%

Diluted earnings per share

1.18

0.66

79%

82%

Restructuring & non-recurring costs

12

24

Non-GAAP - operational1

Gross profit

418

324

29%

29%

Percent of net sales

29.2%

27.6%

SG&A

290

230

26%

26%

Operating income

128

93

37%

39%

Percent of net sales

8.9%

8.0%

EBITDA

164

123

33%

34%

Percent of net sales

11.5%

10.5%

Net Income attributable to HARMAN International Industries, Incorporated

92

HARMAN (www.harman.com) designs, manufactures and markets premier audio, visual, infotainment and enterprise automation solutions for the automotive, consumer and professional markets. With leading brands including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon®, Mark Levinson ® and Revel®, the Company is admired by audiophiles, musicians and the entertainment 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 approximately 16,600 people across the Americas, Europe, and Asia and reported sales of $5.6 billion for the 12 months ended September 30, 2014.  The Company’s shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.

Contact Information

Sandra Rowland
VP, Corporate Development and Investor Relations
HARMAN
203.328.3500

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