EX-99.1 2 har8kexh99-1.htm HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED PRESS RELEASE, DATED JANUARY 25, 2007 Harman International Industries, Incorporated press release, dated January 25, 2007
Harman International
PRESS RELEASE

January 25, 2007
 
FOR IMMEDIATE RELEASE
   
Contact:   Robert C. Ryan
   
Vice President - Treasurer
   
Harman International Industries, Incorporated
   
202-393-1101

HARMAN INTERNATIONAL
REPORTS RECORD SECOND QUARTER RESULTS

Washington, D.C. - January 25, 2007 - Harman International Industries, Incorporated (NYSE: HAR) today announced record results for the three and six months ended December 31, 2006. Net sales for the second quarter were $931.7 million, an increase of 12 percent above the same quarter last year. Net income also increased 12 percent to $81.4 million for the quarter. Earnings per diluted share were $1.22 compared to $1.07 during the same period last year, an increase of 14 percent.

For the six months ended December 31, 2006, net sales increased 11 percent to $1.757 billion compared to the same prior year period. Net income for the six month period increased 9 percent to $138.0 million. Earnings per diluted share were $2.07 compared to $1.86 last year, an increase of 11 percent.

Automotive sales for the second quarter were $632.3 million, an increase of 15 percent compared to the same period last year. Consumer sales increased 5 percent to $163.0 million and Professional sales were $136.4 million, also an increase of 5 percent above the same quarter a year ago.

Dr. Sidney Harman, Executive Chairman and Chief Executive Officer, commented:

“Our second quarter and first half of fiscal 2007 produced record results. Automotive achieved excellent results while making considerable investments in new technologies and newly awarded business. Consumer sales were above last year’s record quarter but operating profits were burdened by increased competition. Professional continues to deliver solid results while introducing new products that incorporate our HiQnet networking protocol. We continue to expect record results with diluted earnings per share at $4.35 for the year.”








January 27, 2007
Page 2


At 4:30 p.m. EST today, Harman International will host an analyst and investor conference call to discuss the results for the three and six months ended December 31, 2006 and to offer management’s outlook for future periods. To participate in the conference call, please dial (888) 428-4480 or for international calls dial (612) 234-9960 prior to 4:30 p.m. EST. Please let the operator know that you would like to join the Harman International call.

A replay of the conference call will be available following the completion of the call at approximately 8:00 p.m. EST. The replay will be available through February 1, 2007. Please call (800) 475-6701 to access the replay. For international calls please call (320) 365-3844. The access code number is 859917.

AT&T will also be web-casting the presentation. The web-cast can be accessed at http://65.197.1.5/att/confcast, enter the Conference ID: 859917, then enter the pass code: Harman and click Go. There will also be a link to the web-cast at www.harman.com. Participation through the web-cast will be in listen-only mode.

Harman International Industries, Incorporated (www.harman.com) is a leading manufacturer of high-quality, high-fidelity audio products and electronic systems for the automotive, 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 within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. These statements 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 changes in consumer confidence, a rise in interest rates affecting consumer spending, automobile industry sales and production rates, the loss of one or more significant customers, including our automotive customers, model-year changeovers and customer acceptance in the automotive industry, our ability to satisfy contract performance criteria, availability of key components to the products we manufacture, competitive products, customer acceptance of our consumer and professional products, fluctuations in currency exchange rates, the outcome of pending or future litigation and other claims, labor disputes at our facilities and those of our customers or common carriers, general economic conditions and other risks detailed in filings made by Harman International with the Securities and Exchange Commission.
 

 

 


 

 
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(000s omitted except per share amounts)
 
                           
     
Three Months Ended 
   
Six Months Ended 
 
     
December 31, 
   
December 31, 
 
     
2006
   
2005
   
2006 
   
2005 
 
                           
Net sales
 
$
931,717
   
823,645
   
1,757,260
   
1,587,293
 
Cost of sales
   
612,079
   
526,876
   
1,150,333
   
1,015,229
 
                           
Gross profit
   
319,638
   
305,769
   
606,927
   
572,064
 
                           
Selling, general and administrative expenses
   
203,918
   
189,909
   
404,289
   
378,011
 
                           
Operating income
   
115,720
   
115,860
   
202,638
   
194,053
 
                           
Other expenses:
                         
   Interest expense, net
   
498
   
4,558
   
637
   
8,397
 
   Miscellaneous, net
   
484
   
1,156
   
1,345
   
1,770
 
                           
Income before income taxes and
   minority interest
   
114,738
   
110,146
   
200,656
   
183,886
 
                           
Income tax expense
   
33,839
   
37,968
   
63,474
   
57,741
 
Minority interest
   
(490
)
 
(357
)
 
(815
)
 
(357
)
                           
                           
Net income
 
$
81,389
   
72,535
   
137,997
   
126,502
 
                           
                           
                           
                           
Basic earnings per share
 
$
1.25
   
1.10
   
2.11
   
1.92
 
Diluted earnings per share
 
$
1.22
   
1.07
   
2.07
   
1.86
 
   
                         
   
                         
Shares outstanding - Basic
   
65,285
   
65,771
   
65,401
   
65,944
 
Shares outstanding - Diluted
   
66,525
   
67,948
   
66,592
   
68,185
 
                           
 

 
 

 
 

 
 

 

 

 
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(000s omitted)
 
 
    
         
   
December 31,
 
December 31,
 
   
2006
 
2005
 
           
ASSETS
         
Current assets
         
     Cash and cash equivalents
 
$
171,108
   
394,499
 
     Accounts receivable
   
480,408
   
418,579
 
     Inventories
   
454,682
   
321,331
 
     Other current assets
   
172,915
   
158,168
 
               
Total current assets
   
1,279,113
   
1,292,577
 
               
   
             
Property, plant and equipment
   
511,618
   
473,356
 
Goodwill
   
396,219
   
350,707
 
Other assets
   
196,063
   
164,805
 
               
   
             
Total assets
 
$
2,383,013
   
2,281,445
 
               
               
   
             
LIABILITIES AND SHAREHOLDERS' EQUITY
             
Current liabilities
             
      Short-term borrowings
 
$
3,977
   
1,735
 
      Current portion of long-term debt
   
17,012
   
3,001
 
  Accounts payable
   
293,677
   
218,247
 
      Accrued liabilities
   
540,585
   
523,802
 
               
Total current liabilities
   
855,251
   
746,785
 
               
   
             
Borrowings under revolving credit facility
   
118,495
   
75,000
 
Long-term debt
   
2,882
   
322,893
 
Other non-current liabilities
   
81,237
   
69,052
 
               
   
             
Total shareholders’ equity
   
1,325,148
   
1,067,715
 
               
Total liabilities and shareholders’ equity
 
$
2,383,013
   
2,281,445