Harman Has Strong Quarter, Bows New Branding Campaign

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Stamford, Conn. - Harman International launched a major marketing campaign and reported strong quarterly results today.

Harman will tell the public its 15 consumer, professional and automotive infotainment brands all belong to a single company with more than $3 billion in annual revenues.

To promote its house-of-brands strategy, Harman placed full-page ads in today's Financial Times, The New York Times and Wall Street Journal. A four-page wraparound appearing on the May issue of Fortune will follow. Consumer product packaging, literature and advertising will integrate the "by Harman" tag with all brand logos, and additional marketing efforts are in the works.

 "By strengthening the association among these brands under one high-profile umbrella, we will demonstrate the Harman passion for innovation and financial strength are the unifying factors for value-added audio and infotainment solutions of virtually any scale," said chairman/CEO Dinseh Paliwal.

The announcements accompanied the release of a third-quarter financial report showing Harman operated in the black for the third consecutive quarter following several quarters of major losses.

 Harman's worldwide net sales grew 42 percent in the fiscal third quarter to $848 million and by 14 percent for the first nine months to $2.54 billion. Net income hit $18 million in the third quarter, compared with a year-ago loss of $69 million, and net income for the nine-month period hit $25 million, compared with a year-ago loss of $427 million.

The only division to post a third-quarter operating loss was the consumer division, which lost $1 million for the quarter but posted a $6 million operating profit for the nine-month period. The third-quarter loss was down from the year-ago $8 million loss, and the $6 million nine-month operating profit contrasts with a year-ago loss of $35 million.

Consumer sales were up 18 percent in the quarter to $81 million and up 2 percent for the nine months to $292 million.

(For further details go to TWICE on May 3.)


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