• Q4 Net Sales climb 22% to $1.4 billion; Full Year Net Sales up 24% to $5.3 billion
  • Q4 Operational EPS up 38% to $1.25; Full Year Operational EPS up 43% to $4.41
  • Issues guidance for Fiscal Year 2015; Raises Fiscal Year 2016 Revenue outlook $800 million to $6.85 billion
  • Industry-leading automotive backlog grows to record high of $20.5 billion
  • Expands portfolio into enterprise automation and control through the acquisition of AMX

STAMFORD, CT, August 7, 2014 – Harman International Industries, Incorporated (NYSE: HAR), the premier audio, visual, and infotainment group, today announced results for the fourth quarter and full year ended June 30, 2014.

Net sales for the fourth quarter were $1.444 billion, an increase of 22 percent compared to the same period last year, as all three of the Company’s divisions reported increased sales. Infotainment net sales increased due to the expansion of recent production launches, higher automotive production, and higher take rates. Lifestyle growth was driven by strong demand for the Company’s home and multimedia products launched earlier in the year and an increase in automotive production and take rates in the car audio business. HARMAN’s Professional Division net sales increased as a result of strong demand for the Company’s lighting and audio products.

Excluding restructuring and non-recurring charges, fourth quarter operating income was $121 million, compared to $87 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $1.25 for the quarter compared to $0.91 in the same period last year. On a GAAP basis, fourth quarter operating income was $57 million compared to $16 million in the same period last year, and earnings per diluted share were $0.62 for the quarter compared to $0.08 in the prior year.

Net sales for the full year were $5.348 billion, an increase of 24 percent compared to the prior year, as all three of the Company’s divisions reported increased sales. Excluding restructuring and non-recurring charges, fiscal year 2014 operating income was $430 million compared to $290 million in the prior year. On the same non-GAAP basis, earnings per diluted share were $4.41 for the year compared to $3.07 in the prior year. On a GAAP basis, fiscal year 2014 operating income was $330 million compared to $201 million in prior year, and earnings per diluted share were $3.36 compared to $2.04 in the prior year.

“We are extremely pleased that, for the fourth consecutive quarter, all three of our divisions achieved double-digit top-line growth, facilitating a 38 percent improvement in earnings per share,” said Dinesh C. Paliwal, the Company’s Chairman, President and CEO. “In our automotive businesses, we are capitalizing on robust demand for an embedded connected car experience and a more favorable production environment. In our other businesses, we continue to gain traction with our award winning products and have recently expanded our portfolio into exciting new markets including enterprise automation and control. We are executing our strategy and, as a result, we have issued strong guidance for fiscal year 2015, raised our outlook for fiscal year 2016 and reported a Company record backlog.”

Paliwal continued, “While achieving record performance in fiscal year 2014, we are taking additional restructuring actions as we continue to relentlessly focus on cost management and align our operations with growth markets. We firmly believe that innovation combined with cost leadership continues to position us for sustainable long-term success.”

FY 2014 Key Figures – Total Company

Three Months Ended June 30

Twelve Months Ended June 30

Increase (Decrease)

Increase

(Decrease)

$ millions (except per share data)

3M

FY14

3M

FY13

Including Currency Changes

Excluding Currency Changes1

12M

FY14

12M

FY13

Including Currency Changes

Excluding Currency Changes1

Net sales

1,444

1,182

22%

20%

5,348

4,298

24%

22%

Gross profit

391

285

37%

35%

1,457

1,104

32%

30%

Percent of net sales

27.1%

24.1%

27.2%

25.7%

SG&A

334

269

24%

21%

1,127

903

25%

23%

Operating income

57

16

268%

307%

330

201

64%

64%

Percent of net sales

4.0%

1.3%

6.2%

4.7%

EBITDA

92

52

78%

81%

462

329

40%

39%

Percent of net sales

6.4%

4.4%

8.6%

7.7%

Net Income attributable to HARMAN International Industries, Incorporated

43

5

n.m.

n.m.

235

142

65%

64%

Diluted earnings per share

0.62

0.08

n.m.

n.m.

3.36

2.04

64%

63%

About HARMAN

HARMAN (NYSE:HAR) designs, manufactures and markets premier audio, visual, infotainment and integrated control solutions for the automotive, consumer and professional markets. With 15 leading brands, including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon® and Mark Levinson ®, 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 global workforce of approximately 15,200 people and reported sales of $5.1 billion for the 12 months ended March 31, 2014.

Contact Information

Sandra Rowland
VP, Corporate Development and Investor Relations
HARMAN
203.328.3500

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