- Net sales increase 19% to $1.6 billion; Up 24% excluding foreign currency translation
- Operational EPS up 64% to $1.79; Operational EBITDA up 43% to $198 million
- Raises fiscal year 2015 operational EPS guidance from $5.25 to $5.85
- Strengthens connected car solutions with acquisitions of Red Bend and S1NN
- Expands to software services including cloud, mobility and analytics with acquisition of Symphony Teleca
STAMFORD, CT – Harman International Industries, Incorporated (NYSE: HAR), the premier audio, visual, infotainment and enterprise automation group, today announced results for the second quarter ended December 31, 2014.
Net sales for the second quarter were $1.58 billion, an increase of 19 percent compared to the same period in the prior year or 24 percent excluding the impact of foreign currency translation. Infotainment net sales increased 12 percent, or 18 percent excluding foreign currency translation (ex-FX), due to platform expansion, stronger automotive production, and higher take rates. Lifestyle net sales grew 26 percent (31 percent ex-FX) driven by strong demand for the Company’s home and multimedia product lines and increased automotive production levels and higher take rates in car audio. Net sales in the Professional division increased 29 percent (32 percent ex-FX) primarily as a result of the expansion of the Company’s product portfolio into enterprise automation and control and video switching.
On a GAAP basis, second quarter operating income was $149 million, compared to $102 million in the same period in the prior year, and earnings per diluted share were $1.65 for the quarter compared to $1.03 in the same period in the prior year. Excluding restructuring and other non-recurring items, second quarter operating income was $162 million compared to $108 million in the same period in the prior year, and earnings per diluted share were $1.79 compared to $1.09 in the same period last year.
“I am extremely pleased to report double-digit, top-line growth in each of HARMAN’s divisions, making this HARMAN’s sixth consecutive quarter of such outstanding performance. Despite foreign exchange headwinds, our fiscal year is off to a solid start with 21 percent year-to-date, top-line growth, driving over 150 basis point expansion of our EBITDA margin. As a result, we are raising our 2015 EPS guidance from $5.25 to $5.85,” said Dinesh C. Paliwal, the Company’s Chairman, President and Chief Executive Officer. “We are confident that the demand for a rich connected car experience is sustainable and will continue to drive take rates, particularly for embedded infotainment systems and branded car audio solutions.
“Together with our progress in Infotainment and Professional, groundbreaking innovations in Lifestyle and on-going focus on disciplined execution, we are optimistic about the second half of fiscal year 2015,” added Paliwal. “Longer term, we have been reinforcing the importance of software and services to HARMAN as the technology leader for the connected lifestyle, including enterprise, home, car and mobile markets. With the transformative acquisitions of Red Bend and Symphony Teleca and expanded capabilities in cloud, mobility and analytics, HARMAN will accelerate Internet of Things solutions for a broader set of industries and markets. "