- Third quarter net sales of $1.062 billion; operating income of $38 million
- Company raises fiscal 2013 EPS guidance to $3.00 from previous guidance of $2.70 - $2.90
- Restructuring program on track to deliver $30-35 million in annualized savings starting in fiscal 2014
- Martin acquisition expands Professional Division portfolio
- iOnRoad acquisition accelerates the roll-out of advanced safety infotainment solutions
Net sales for the third quarter were $1.062 billion, a decrease of three percent compared to the same period last year. Net sales decreased due to the lower automotive production in Western Europe as a result of the economic slowdown, partially offset by sales growth in home and multimedia products in the Lifestyle Division and in the Professional Division.
Third quarter operating income was $38 million, compared to $60 million in the same period last year. Excluding restructuring and non-recurring charges, operating profit in the third quarter was $66 million, compared to $67 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $0.79 for the quarter compared to $0.74 in the same period last year. On a GAAP basis, earnings per diluted share were $0.50 for the quarter compared to $2.38 in the same period last year. In the third quarter last year, the Company released a deferred tax asset valuation allowance, which increased EPS by $1.71.
The Company today also announced it has raised its fiscal 2013 operational earnings per share guidance to $3.00 from its previous range of $2.70 - $2.90. HARMAN now expects revenue to be at the mid- to high-end of its previously announced range of $4.175 - $4.250 billion. The Company also expects operating profit and EBITDA to meet the high end of its previously announced range of $265 - $280 million and $385 - $400 million, respectively.
Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “I am pleased with the double digit growth in our Lifestyle Division’s home and multimedia product lines and the expansion of our Professional business with the acquisition of Martin. Despite the prolonged economic slow-down in Europe, we are successfully executing our operational and cost management programs and delivered improved earnings per share. As a result, we have raised our earnings per share guidance for fiscal 2013.”
Mr. Paliwal continued, “We are on track to complete the restructuring program that we announced last quarter and these actions will further improve the Company’s competitiveness over the long-term. We continue to pursue accretive, bolt-on acquisitions that expand our market opportunities and expedite our top-line growth. With our powerful portfolio of brands and technologies, along with our higher margin order backlog, we are confident that fiscal 2014 and 2015 will be stronger years for HARMAN.”
(Full Press Release is available for download below)