• Net sales climb 32% to $1.4 billion; China sales up 60%
• Non-GAAP operating income up 63% to $108 million and EPS up 41% to $1.12
• Raises full year revenue guidance by $175 million to $5.275 billion and non-GAAP EPS from ~$4.16 to ~$4.36
STAMFORD, CT – Harman International Industries, Incorporated (NYSE: HAR), the leading global infotainment and audio group, today announced results for the third quarter ended March 31, 2014.
Net sales for the third quarter were $1.404 billion, an increase of 32 percent compared to the same period last year, as all three of the Company’s divisions reported increased sales. Infotainment net sales were up due to higher automotive production and take rates. Lifestyle growth was driven by one large order from a mobile telecommunications customer and accelerated sales of new products launched earlier in the year in the home and multimedia business, and an increase in automotive production in the car audio business. Professional net sales increased as a result of the expansion of the Company’s product portfolio into lighting.
On a GAAP basis, third quarter operating income was $101 million, compared to $38 million in the same period last year, and earnings per diluted share were $1.05 for the quarter compared to $0.50. Excluding restructuring and non-recurring charges, third quarter non-GAAP operating income was $108 million, compared to $66 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $1.12 for the quarter compared to $0.79 in the same period last year.
“We are extremely pleased that, for the third consecutive quarter, all three of our divisions reported double-digit top-line growth, facilitating a 42 percent improvement in EBITDA,” 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. There is pent up demand, particularly in Europe, which we expect will stabilize in the coming quarters. In our other businesses, we continue to gain traction with our award-winning innovative products and the expansion of our distribution channels globally. As a result of our continued success and the current positive trends in automotive industry, we have increased our revenue and EPS forecast for a second time this year.”