Harman International Announces Q4 and Full Year Results
WASHINGTON--Aug. 15, 2001--Harman International today announced financial results for the fourth quarter and full fiscal 2001 year.For the fiscal year ended June 30, 2001, the Company reported net sales of $1.717 billion, a 2 percent increase above last year's net sales of $1.678 billion. Excluding currency effects, net sales increased 8 percent. Net income for the year, before a one-time charge, was $58.2 million, equal to $1.72 per share.
After the $36.3 million one-time charge ($25.8 million after tax) recorded in the third quarter, net income was $32.4 million, or $0.96 per share. Prior year net income was $72.8 million, equal to $2.06 per share.
For the fourth quarter ended June 30, 2001, net sales were $447.7 million compared to $446.4 million in the same period last year. Exclusive of foreign currency effects, the Company's net sales increased 3 percent. Net income for the period was $19.4 million, equal to $0.58 per share. Last year's net income for the same period was $23.3 million, or $0.66 per share.
The Consumer Systems Group reported net sales of $1.267 billion for the fiscal year ended June 30, 2001, an increase of 3 percent. Excluding the effects of foreign currency translation, net sales increased 9 percent over last year. For the year, sales of aftermarket radios and navigation units by Becker were robust.
In North America and Asia, sales of audio systems to Toyota and Lexus increased while sales at Chrysler were below last year's levels. Home speaker and electronic sales were down and sales to personal computer manufactures were up slightly in the fourth quarter.
Professional Group net sales were $449.2 million for the fiscal year compared to net sales of $449.7 last year. Exclusive of foreign currency effects, net sales increased 4 percent. Strong sales at Crown and the continued success of AKG's OnStar program were offset by a decline in the cinema market.
Commenting on these results, Bernard Girod, Vice Chairman and Chief Executive Officer, said: "We achieved our earnings target in the fourth quarter and made substantial investments in the most promising parts of our business.
"We built a new engineering center in Detroit to support the launch of major automotive infotainment systems in the United States. We made substantial engineering and capacity investments at Harman/Becker in Germany and at AKG in Vienna. And we reduced all expenses not critical to the achievement of our five-year goals."
Dr. Sidney Harman, Executive Chairman, said: "Domestically, our Consumer Group produced a 45% increase in operating profit although sales declined 9% from a year ago. It has taken longer than we had hoped to reshape our International Consumer operations, but after significant losses in fiscal 2001, it is now our expectation that it will reach break-even in fiscal 2002.
"Although the Professional Group was affected by very much the same circumstances as Consumer, both domestically and abroad, it performed relatively well in fiscal 2001. Sales were flat and operating profits declined modestly compared with fiscal 2000 despite market conditions. As of this moment, all segments of the Professional market seem to have developed renewed vigor.
"The OEM Group performed splendidly in the quarter and through the year. The Mark Levinson systems in the Lexus range have been remarkably successful.
"Our Automotive OEM Group has received major new awards from Mercedes Benz for navigation/multimedia systems. These awards represent approximately $150 million in new sales in fiscal 2003, $300 million in fiscal 2004 and over $400 million in fiscal 2005. They reinforce our expectations of 25% annual growth in earnings for each of the next four years."
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
FOURTH QUARTER RESULTS - FISCAL 2001
FOR THE THREE AND TWELVE MONTHS ENDED June 30, 2001 and 2000
(000s omitted except per share amounts)
Three Months Ended Twelve Months Ended
June 30, June 30,
2001 2000 2001 2000
---------- ---------- ---------- ----------
Net sales $ 447,737 $ 446,409 $1,716,547 $1,677,939
Cost of sales 327,347 323,986 1,268,512 1,208,603
---------- ---------- ---------- ----------
Gross profit 120,390 122,423 448,035 469,336
Selling, general
and administrative
expenses 86,507 87,416 376,807 347,614
---------- ---------- ---------- ----------
Operating income 33,883 35,007 71,228 121,722
Other expense:
Interest
expense 6,356 3,883 24,950 18,507
Miscellaneous,
net 754 (1,078) 1,179 386
---------- ---------- ---------- ----------
Income before
income taxes 26,773 32,202 45,099 102,829
Income tax expense
and minority
interest 7,416 8,882 12,735 29,991
---------- ---------- ---------- ----------
Net income $ 19,357 $ 23,320 32,364 $ 72,838
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Basic EPS $ 0.60 $ 0.68 $ 1.00 $ 2.11
Diluted EPS $ 0.58 $ 0.66 $ 0.96 $ 2.06
Shares
outstanding
- basic 32,034 34,144 32,296 34,452
Shares
outstanding
- diluted 33,427 35,334 33,737 35,300
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
CONSOLIDATED BALANCE SHEETS
(000s omitted)
June 30, June 30,
2001 2000
---------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 2,748 $ 4,365
Accounts receivable 315,817 306,596
Inventories 317,500 298,273
Other current assets 72,806 61,792
---------- ----------
Total current assets 708,871 671,026
---------- ----------
Property, plant and equipment 264,136 251,737
Excess of cost over fair value of
assets acquired 145,258 166,647
Other assets 44,120 48,095
---------- ----------
Total assets $1,162,385 $1,137,505
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 19,394 $ 14,969
Current portion of long-term debt 5,544 7,537
Accounts payable and accrued liabilities 325,217 338,875
---------- ----------
Total current liabilities 350,155 361,381
---------- ----------
Long-term debt 343,822 254,818
Other non-current liabilities 44,537 33,918
Minority interest 929 1,055
Total shareholders' equity 422,942 486,333
---------- ----------
Total liabilities and
shareholders' equity $1,162,385 $1,137,505
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