Harman International Reports 93 Percent Earnings Increase in First Quarter
WASHINGTON--Oct. 30, 2002--Harman International Industries, Incorporated today announced record results for the first quarter.Net sales for the quarter were $490.8 million, a 23 percent increase over net sales of $399.0 million in the same period last year. Net income was $9.8 million, almost double the earnings a year ago. The Company reported earnings per diluted share of $0.29 for the quarter compared to $0.15 a year ago, an increase of 93 percent.
The Consumer Systems Group produced net sales of $389.8 million, an increase of 33 percent over the same prior year period. Sales to automotive customers increased 48 percent. Harman/Becker reported substantial sales increases to European automotive customers as our new infotainment programs came on stream for Mercedes-Benz, BMW, Audi, and Porsche.
Consumer audio product sales of $73.6 million were 6 percent above last year. Professional Group sales for the quarter were $101.0 million, a slight decrease from sales of $105.0 million. Sales increases at JBL Professional and AKG were offset by modest sales declines at the other professional businesses.
Dr. Sidney Harman, Executive Chairman, and Bernard Girod, Vice Chairman and Chief Executive Officer, commented:
"The Company performed very well during the first quarter of the fiscal year. Our infotainment and audio programs with major automotive customers drove both sales and earnings. The consumer home audio business showed continued improvement while the professional business units performed well in a market particularly affected by economic uncertainty.
"The Company began recognizing expense from the issuance of new option grants during the quarter."
At 4:30 p.m. EDT today, Harman International will host an analyst and investor conference call to discuss the results for its first quarter and to comment on management's outlook for future periods.
To participate in the conference call, please call (US) (800) 553-0288 or for international calls dial (612) 288-0340 prior to 4:30 p.m. EDT. 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. EDT. The replay will be available through November 6, 2002. To access the replay, please call (US) (800) 475-6701 or for international calls (320) 365-3844. The access code number is 655292.
Harman International Industries, Incorporated (www.harman.com) is a leading manufacturer of high-quality, high fidelity audio products and electronic systems for the 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 and spending, automobile industry sales and production rates, 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, currency exchange rates, the outcome of pending or future litigation and other claims, labor disputes at our facilities, those of our customer or common carriers, general economic conditions and other risks detailed in the Company's filings with the Securities and Exchange Commission.
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
FIRST QUARTER RESULTS - FISCAL 2003
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 and 2001
(000s omitted except per share amounts)
Three Months Ended
September 30,
2002 2001
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Net sales $ 490,759 $ 399,009
Cost of sales 346,024 295,288
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Gross profit 144,735 103,721
Selling, general and administrative
expenses 124,736 90,377
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Operating income 19,999 13,344
Other expense:
Interest expense 5,909 6,092
Miscellaneous, net 844 165
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Income before income taxes 13,246 7,087
Income tax expense 3,444 2,056
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Net income $ 9,802 $ 5,031
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Basic EPS $ 0.30 $ 0.16
Diluted EPS $ 0.29 $ 0.15
Shares outstanding - basic 32,478 32,076
Shares outstanding - diluted 33,982 33,655
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
CONSOLIDATED BALANCE SHEETS
(000s omitted)
September 30, September 30,
2002 2001
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ASSETS
Current assets
Cash and cash equivalents $ 66,443 $ 8,717
Accounts receivable 327,229 305,871
Inventories 354,815 342,020
Other current assets 88,939 72,692
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Total current assets 837,426 729,300
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Property, plant and equipment 332,391 281,042
Excess of cost over fair value of
assets acquired 199,202 148,552
Other assets 97,187 52,800
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Total assets $1,466,206 $1,211,694
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 0 $ 13,354
Current portion of long-term debt 2,742 78,528
Accounts payable and accrued
liabilities 396,242 317,596
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Total current liabilities 398,984 409,478
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Long-term debt 491,564 309,426
Other non-current liabilities 48,391 48,004
Minority interest 2,224 977
Total shareholders' equity 525,043 443,809
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Total liabilities and shareholders'
equity $1,466,206 $1,211,694
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