Harman Posts Fiscal Q2 Sales, Profit Gains

By Steve Smith -- TWICE, 2/7/2012

Stamford, Conn. - Harman International Industries reported higher net sales and net earnings in its fiscal second quarter, ended Dec. 31, 2011.

Net sales for the quarter were $1.13 billion, an increase of 18 percent compared with the same period last year. Excluding foreign currency translation, net sales increased by 19 percent.

Net income was $68 million, up 7 percent from the prior year's $56 million, excluding foreign currency translation. Operating income was $95 million, compared with $68 million in the same period last year. Excluding restructuring charges, operating profit in the second quarter grew by 32 percent to $96 million, compared with $73 million in the same period last year.

Harman said that during the quarter all three of its divisions reported higher sales and operating margins. The operating margin improvement was primarily driven by leveraging higher sales volume on a lower and more efficient cost base.

For instance, in its infotainment division, consisting of OEM vehicle systems, net sales were up 20 percent to $600 million compared with the prior year, and operating income was up 42 percent to $50 million, excluding currency charges. In its lifestyle division, sales were $369 million, up 21 percent vs. the prior year, while operating income was up 25 percent to $46 million, excluding currency charges.

In both divisions, the luxury automotive segment boosted sales along with continued growth in China and other BRIC countries, Harman said.

In its professional division, net sales were also up, in this case 8 percent to $158 million, with operating income up 16 percent to $27 million, excluding currency charges.