Stamford, Conn. -
Harman International Industries reported higher net sales and net profits in
its fiscal first quarter, ended Sept. 30.
Net sales for the
first quarter were $1.051 million, an increase of 26 percent compared with the
same period last year. Excluding foreign currency translation, net sales
increased by 19 percent, Harman said.
Net income was $48
million, up from the prior year's $27 million. Operating income was $74
million, compared with $43 million in the same period last year.
quarter, all three of the company's divisions reported higher sales.
In the infotainment
division, net sales were $603 million up from the prior year's $446 million.
Operating income was $47 million, up from $8 million. Harman attributed higher
sales to pent-up demand from the Japan tsunami and earthquake and continued
growth in BRIC countries.
In its lifestyle
division sales were up 19 percent to $300 million compared with last year due
to the same factors in the infotainment division, but operating income was down
$3 million to $26 million. Profits were down due to higher costs of neodymium magnets,
In the professional
division net sales were $148 million, up $8 million, while operating profit was
down $6 million from the prior year's quarter to $19 million.
Dinesh C. Paliwal,
chairman, president/CEO, said, "We are now in a new growth phase at Harman with
strong footholds in each of the BRIC countries -- further diversifying and
expanding our growth prospects. Our operational realignment will better enable
us to focus and make measurable improvement on the profitability of our
infotainment business and we are aggressively working on increasing our backlog
of scalable systems. We are excited to have launched a global marketing
campaign featuring some of the world's most prominent music artists to support
penetration of our family of brands across our business lines."