Harman International Industries, Incorporated, the leading global infotainment and audio group (NYSE: HAR), today announced results for the fourth quarter and full year ended June 30, 2013. Net sales for the fourth quarter were $1.182 billion, an increase of eight percent compared to the same period last year, as all three of the Company’s divisions reported sales increases. Net sales increased due to the expansion of recent platform launches in the Infotainment division, growth in home and multimedia products in the Lifestyle Division, and the expansion of the Professional Division’s product portfolio into lighting and stronger professional audio sales.
Excluding restructuring and non-recurring charges, fourth quarter non-GAAP operating income was $87 million, compared to $70 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $0.91 for the quarter compared to $0.67 in the same period last year. The Company recorded restructuring and non-recurring charges of $72 million in the quarter, primarily related to the divestiture of a manufacturing operation in Germany and accrual for potential NAFTA customs duties related to prior years. This was partially offset by the release of contingent consideration related to the acquisition of MWM Acoustics. On a GAAP basis, fourth quarter operating income was $16 million, compared to $71 million in the same period last year, and earnings per diluted share were $0.08 for the quarter compared to $0.69 in the same period last year.
The Company will hold an Investor Day in New York City on Thursday, August 8, 2013 and will provide financial guidance for fiscal 2014, as well as a longer term outlook.
Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “I am pleased that all three of our divisions reported top line growth in the quarter, which resulted in stronger bottom line performance. We had a phenomenal year for innovation, adding nearly 500 patents and patents pending bringing our intellectual property portfolio to nearly 5,000. At the same time, we continued to take actions to lower the cost base to improve both our short and long term profitability. Positive momentum in all three of our divisions, combined with a more competitive cost structure and world class innovation, positions us well as we begin fiscal 2014.”
|FY 2013 Key Figures – Total Company||Three Months Ended June 30||Twelve Months Ended June 30|
|Increase (Decrease)||Increase (Decrease)|
|$ millions (except per share data)||3M FY13||3M FY12||IncludingCurrencyChanges||ExcludingCurrencyChanges 1||12M FY13||12M FY12||IncludingCurrencyChanges||ExcludingCurrencyChanges 1|
|Percent of net sales||24.1%||27.4%||25.7%||27.1%|
|SG&A & Other||269||228||18%||18%||903||884||2%||4%|
|Percent of net sales||1.3%||6.5%||4.7%||6.9%|
|Diluted earnings per share||0.08||0.69||(89%)||(89%)||2.04||4.57||(55%)||(55%)|
|Restructuring-related costs and other non- GAAP items||72||(1)||88||9|
|Gross profit (1)||316||299||6%||5%||1,140||1,188||(4%)||(2%)|
|Percent of net sales (1)||26.7%||27.4%||26.5%||27.2%|
|SG&A & Other (1)||228||229||(1%)||(1%)||850||878||(3%)||(1%)|
|Operating income (1)||87||70||25%||23%||290||310||(6%)||(4%)|
|Percent of net sales (1)||7.4%||6.4%||6.7%||7.1%|
|Net Income (1)||63||48||32%||29%||214||211||2%||4%|
|Diluted earnings per share (1)||0.91||0.67||35%||33%||3.07||2.93||5%||8%|
|Shares outstanding – diluted (in millions)||70||72||70||72|
|1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.|
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