-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M/166KDbV8OvWJuLuT3HnCIn6MzfBWdp0lcqvYmP5TEPJ0z8KtoY0nCdqvs2PamB slvhCjv3Yike6ayBbzFczQ== 0000800459-99-000001.txt : 19990128 0000800459-99-000001.hdr.sgml : 19990128 ACCESSION NUMBER: 0000800459-99-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990126 ITEM INFORMATION: FILED AS OF DATE: 19990127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARMAN INTERNATIONAL INDUSTRIES INC /DE/ CENTRAL INDEX KEY: 0000800459 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651] IRS NUMBER: 112534306 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09764 FILM NUMBER: 99513632 BUSINESS ADDRESS: STREET 1: 1101 PENNSYLVANIA AVENUE N W STREET 2: STE 1010 CITY: WASHINGTON STATE: DC ZIP: 20004 BUSINESS PHONE: 2023931101 MAIL ADDRESS: STREET 1: 1101 PENNSYLVANIA AVENUE NW STREET 2: SUITE 1010 CITY: WASHINGTON STATE: DC ZIP: 20004 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) January 26, 1999 Harman International Industries, Incorporated ------------------------------------------ (Exact name of registrant as specified in its charter) Delaware ---------------------------------------------- (State or other jurisdiction of incorporation) 1-9764 11-2534306 - ------------------------ --------------------------------- (Commission File Number) (IRS Employer Identification No.) 1101 Pennsylvania Avenue, N.W., Ste. 1010, Washington, D.C. 20004 - ------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (202) 393-1101 Not Applicable - ------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events On January 26, 1999, Harman International Industries, Incorporated ("Harman") issued a press release announcing earnings for the three and six months ending December 31, 1998, including a restructuring charge, other information concerning these periods, and a future outlook. The press release is filed as part of this Current Report on Form 8-K. Item 7c. Exhibits Exhibit Description 20.1 Press release announcing second quarter and first half results, including special charges, and other information concerning these periods and future periods. Note: Except for historical information contained herein, the matters discussed are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to the effect of economic conditions, product demand, currency exchange rates, competitive products and other risks detailed in the Company's other Securities and Exchange Commission filings. 2 Signatures ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED By: /s/ Frank Meredith ---------------------------- Frank Meredith Vice President of Finance and Administration and Chief Financial Officer Date: January 26, 1999 3 EXHIBIT INDEX --------------- Exhibit No. Description Page - ----------- ----------- ---- 20.1 Press Release 5-8 4 EX-20 2 EXHIBIT 20.1 January 26, 1999 FOR IMMEDIATE RELEASE HARMAN INTERNATIONAL INDUSTRIES, INC. ANNOUNCES SECOND QUARTER AND FIRST HALF RESULTS, INCLUDING A RESTRUCTURING CHARGE. THE COMPANY FORECASTS EARNINGS FOR THE NEXT 18 MONTHS Washington, DC -- Harman International Industries, Inc. (HAR:NYSE) today announced its financial results for the second quarter and first six months of its fiscal 1999 year. For the second quarter, sales were $387.5 million, approximately 4% below last year's sales of $403.0 million. The Company reported a pretax loss of $44.3 million for the quarter after a pretax charge of $66.4 million for plant closures ($17.0 million), impaired assets ($20.0 million), inventory write-down ($24.3 million) and other items ($5.1 million). Net income for the quarter before the charge was $15.3 million, equal to $0.86 per share. The loss for the quarter after the charge was $1.73 per share. Cash expense associated with the charge is estimated at $15 million and non-cash charges total approximately $51 million. The restructuring plan is expected to result in annual pretax savings of approximately $24 million. For the first half, sales were $703.4 million, approximately 4% below last year's sales of $732.2 million. The company reported a pretax loss of $32.0 million after the pretax charge of $66.4 million identified above. Net income for the half before the charge was $23.8 million, equal to $1.32 basic and $1.30 diluted, per share. After the charge, the Company reports a net loss per share for the six months of $1.22. 5 Harman International Industries, Inc. January 26, 1999 Page -2- The Consumer Group reported lower sales driven by the declines in Asia and a generally soft consumer electronics market worldwide. Consumer sales were also affected by the restructuring program now in progress. The operating profit at the Consumer Group was virtually breakeven before the charge. The Professional Group reported modestly lower sales, due primarily to a decline in sales to Asia and to the timing of certain contracts. OEM sales increased over the prior year, primarily due to strong sales to Chrysler including systems for the new Jeep Cherokee, Dodge Durango and the Chrysler LHS and 300M. Commenting on the results, Dr. Sidney Harman, Chairman, stated: "During the past year, we began formulating a thorough restructuring program designed to improve the profitability of the Consumer Group and other operations which did not meet our financial expectations. We determined that when a complete and fully tested operational program was in place, the financial restructuring would follow. The operational plan was completed and the financial restructuring charge was taken in the second quarter of fiscal 1999." Bernard Girod, Chief Executive Officer, said: "We are confident that the Company will return to strong earnings performance once the restructuring program has been fully implemented. A substantial part of the work will be completed by the end of our third fiscal quarter. We expect strong earnings performance beginning with the fourth fiscal quarter of this year. Because of the complexity of this material and the potential for confusion, we have elected to provide a specific earnings forecast for the next 18 months. 6 Harman International Industries, Inc. January 26, 1999 Page -3- Although the Company does not usually forecast, nor will it in the future, the extraordinary circumstances surrounding the restructuring program prompt us to do so now." "In the third fiscal quarter ending March 31, 1999, we expect to report earnings of $0.70 a share. In the fourth quarter, earnings will reach $1.15 per share. In fiscal 2000, the Company expects to earn $4.00 per share. Thereafter, we expect to report earnings increases of 15% to 20% annually. We are confident that the many and substantial opportunities we have been nurturing in the past few years in the automotive OEM field will come to fruition, that our Professional Group will perform effectively, and that the Consumer Group will have been successfully restructured and will contribute positively to earnings." Harman International Industries, Incorporated (www.harman.com) is a leader in the design, manufacture and marketing of high-quality, high- fidelity audio products targeted primarily at the OEM, consumer and professional markets. The Company's stock is traded on the New York Stock Exchange under the symbol: HAR. Note: Except for historical information contained herein, the matters discussed are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to the effect of economic conditions, product demand, currency exchange rates, competitive products and other risks detailed in the Company's Securities and Exchange Commission filings. 7 HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED FISCAL 1999 RESULTS FOR THE THREE AND SIX MONTHS ENDED December 31, 1998 (000s omitted except per share amounts) Three Months Ended Six Months Ended December 31, December 31, 1998 1998 ------------ ------------ Net sales $ 387,518 $ 703,414 Cost of sales 303,071 535,232 ------------ ------------ Gross profit 84,447 168,182 S,G &A 84,750 150,156 Plant closures, severance 17,010 17,010 Asset impairment 20,054 20,054 ------------ ------------ Operating income (37,367) (19,038) Other expense (income): Interest expense 6,054 11,987 Miscellaneous, net 872 962 ------------ ------------ Income before income taxes (44,293) (31,987) Income tax benefit (13,731) (9,916) ------------ ------------ Net income $ (30,562) $ (22,071) ============ ============ Basic EPS $ (1.73) $ (1.22) ============ ============ Diluted EPS $ (1.73) $ (1.22) ============ ============ Shares - basic 17,701 18,076 Shares - diluted 17,701 18,076 8 -----END PRIVACY-ENHANCED MESSAGE-----