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.
