Harman Q4, Yearly Sales Up

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Stamford, Conn. - Harman International Industries said net sales increased 18 percent to $3.4 billion for the fiscal year, ended June 30.

The company also reported its fiscal fourth-quarter results.

On a GAAP basis, operating profit from continuing operations was $86 million, compared with an operating loss of $504 million in fiscal 2009. Excluding non-recurring items, annual operating profit from continuing operations was $116 million, compared with a non-GAAP operating loss of $86 million in the prior year, it said.

Net sales for the quarter, also ended June 30, were $851 million, an increase of 29 percent compared with the prior-year period. They increased by 35 percent when foreign currency translation is excluded.

Fourth-quarter operating income was $26 million, an improvement of $109 million vs. a prior year loss of $84 million.

Excluding non-recurring items, operating profit from continuing operations in the fourth quarter was $30 million, compared with a non-GAAP operating loss of $35 million in the same period last year.

In conjunction with its earnings statement, Harman announced it had been awarded a multiyear contract to supply integrated infotainment systems for Chrysler Group and Fiat vehicles sold worldwide.

The new award is based on Harman's scalable, next-generation infotainment platform and includes advanced connectivity, integrated onboard navigation and audio tuning capabilities, the company said in a statement. 

For the quarter and full fiscal year, Harman's consumer division posted worldwide sales gains and a narrower operating loss. Fourth-quarter sales rose 15 percent, including the effects of currency fluctuations, to $81 million, and the division's operating loss narrowed to $11 million from $15 million. For the full year, sales rose 5 percent, including currency fluctuations, to $373 million, and the operating loss narrowed to $5 million from $49 million.

Full-year gross margin rose on a non-GAAP basis hit 26.6 percent, up by 3.3 percentage points.

 In the fourth quarter, consumer division SG&A expenses rose on a non-GAAP basis to $26 million from the year-ago $23 million, "primarily due to investments in advertising and marketing-related activities," the company said.

 The division launched 88 new products in the fiscal year, supported by ads in such magazines as Esquire, Rolling Stone, Modern Luxury, Fast Company and Dwell. One of the division's most successful launches was JBL's MS-8 aftermarket digital processor for the car, "which has exceeded expectations for sales and editorial reviews," the company said. The processor connects to OEM and aftermarket head units to tune a sound system to a particular car's interior acoustics.

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