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HARMAN Reports First Quarter Fiscal Year 2014 Results

  HARMAN Reports First Quarter Fiscal Year 2014 Results

  *Net sales up 17% to $1.172 billion and non-GAAP EPS up 21% to $0.95
  *Non-GAAP operating income up 18% to $93 million and generated $113 million
    cash from operations
  *Secured $1.6 billion in new awards during Q1
  *Completed the acquisition of Duran Audio; Martin Lighting acquisition
    ahead in synergy savings
  *Launched new restructuring program to achieve annualized savings of
    approximately $25 million

Business Wire

STAMFORD, Conn. -- October 31, 2013

Harman International Industries, Incorporated, the leading global infotainment
and audio group (NYSE:HAR), today announced results for the first quarter
ended September 30, 2013.

Net sales for the first quarter were $1.172 billion, an increase of 17 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
production launches in the Infotainment division, growth in home and
multimedia and car audio within the Lifestyle division, and the expansion of
the Company’s product portfolio into lighting within the Professional
division.

Excluding restructuring and non-recurring charges, first quarter non-GAAP
operating income was $93 million, compared to $79 million in the same period
last year. On the same non-GAAP basis, earnings per diluted share were $0.95
for the quarter compared to $0.79 in the same period last year. On a GAAP
basis, first quarter operating income was $69 million, compared to $79 million
in the same period last year, and earnings per diluted share were $0.66 for
the quarter compared to $0.79. The Company recorded restructuring and
non-recurring charges of $24 million in the quarter.

Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “We are
pleased that our fiscal year is off to a solid start with all three of our
divisions reporting double-digit top line growth, which resulted in stronger
bottom-line performance. During the quarter, we also positioned Harman for
continued growth, as we secured over $1.3 billion of new infotainment awards
and gained market share through competitive replacements based on our
unsurpassed innovation. Our patent count jumped from 4,900 to over 5,200
patents and filings, a further testament to our technology leadership.”

Paliwal continued, “We continue to take aggressive cost actions and
implemented a new restructuring program in Germany this quarter to further
realign our cost structure. These actions are expected to yield annual savings
of approximately $25 million beginning in fiscal year 2015.”

                               
FY 2014 Key Figures – Total     Three Months Ended September 30
Company
                                                       Increase
                                            
                                                       (Decrease)
                                                       Including     Excluding
$ millions (except per share       3M        3M
data)                                           Currency    Currency
                                   FY14      FY13
                                                       Changes       Changes^1
Net sales                       1,172   998     17%         14%
Gross profit                    322     278     16%         13%
Percent of net sales            27.4%   27.9%              
SG&A & Other                    252     199     27%         24%
Operating income                69      79      (12%)       (14%)
Percent of net sales            5.9%    7.9%               
EBITDA                          101     108     (6%)        (8%)
Percent of net sales            8.6%    10.8%              
Net Income                      46      55      (15%)       (17%)
Diluted earnings per share      0.66    0.79    (16%)       (18%)
Restructuring-related costs
and other non-                  24      0                  

GAAP items
Non-GAAP                                                 
Gross profit^(1)                324     278     16%         14%
Percent of net sales^(1)        27.6%   27.9%              
SG&A & Other^(1)                230     199     16%         13%
Operating income^(1)            93      79      18%         16%
Percent of net sales^(1)        8.0%    7.9%               
EBITDA^(1)                      123     108     14%         12%
Percent of net sales^(1)        10.5%   10.8%              
Net Income^(1)                  67      55      22%         19%
Diluted earnings per            0.95    0.79    21%         18%
share^(1)
Shares outstanding – diluted    70      69                 
(in millions)
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this
release.


Summary of Operations – Gross Margin and SG&A

In the first quarter of fiscal year 2014, non-GAAP gross margin and SG&A
expense as a percentage of net sales were in line with the prior year quarter.
Gross margin decreased from 27.9 to 27.6 percent and SG&A expense decreased as
a percentage of net sales from 19.9 to 19.7 percent for this quarter.

Investor Call Today, October 31, 2013

At 11:00 a.m. EDT today, Harman’s management will host an analyst and investor
conference call to discuss the first quarter results. Those who want to
participate via audio in the earnings conference call should dial 1 (800) 698
0460 (U.S.) or +1 (303) 223 2680 (International) ten minutes before the call
and reference HARMAN, Access Code: 21675903.

In addition, Harman invites you to visit the Investors section of its website
at: www.harman.com where visitors can sign-up for email alerts and
conveniently download copies of historical earnings releases and supporting
slide presentations, among other documents. The fiscal first quarter earnings
release and supporting materials will be posted on the site at approximately
8:00 a.m. EDT, Thursday, October 31, 2013.

A replay of the call will also be available following its completion at
approximately 1:00 p.m. EDT. The replay will be available through January 31,
2014 at 1:00 p.m. EST. To listen to the replay, dial 1 (800) 633 8284 (U.S.)
or +1 (402) 977 9140 (International), Access Code: 21675903. If you need
technical assistance, call the toll-free Global Crossing Customer Care Line at
1 (800) 473 0602 (U.S.) or +1 (303) 446 4604 (International).

General Information

HARMAN designs, manufactures, and markets a wide range of infotainment and
audio solutions for the automotive, consumer, and professional markets. It is
a recognized world leader across its customer segments with premium brands
including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon®,and Mark Levinson®
and leading-edge connectivity, safety and audio technologies. The Company is
admired by audiophiles across multiple generations and supports leading
professional entertainers and the venues where they perform. More than 25
million automobiles on the road today are equipped with HARMAN audio and
infotainment systems. HARMAN has a workforce of 14,600 people across the
Americas, Europe, and Asia and reported sales of $4.5 billion for the last
twelve months ended September 30, 2013. The Company’s shares are traded on the
New York Stock Exchange under the symbol NYSE:HAR. Please visit www.harman.com
for more information.

A reconciliation of the non-GAAP measures included in this press release to
the most comparable GAAP measures is provided in the tables contained at the
end of this press release. Harman does not intend for this information to be
considered in isolation or as a substitute for other measures prepared in
accordance with GAAP.

Forward-Looking Information

Except for historical information contained herein, the matters discussed in
this earnings release are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act. One should not place undue
reliance on these statements. The Company bases these statements on particular
assumptions that it has made in light of its industry experience, as well as
its perception of historical trends, current market conditions, current
economic data, expected future developments and other factors that the Company
believes 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: (1) the Company’s ability to maintain profitability in its
infotainment division if there are delays in its product launches which may
give rise to significant penalties and increased engineering expense; (2) the
loss of one or more significant customers, or the loss of a significant
platform with an automotive customer; (3) fluctuations in currency exchange
rates, particularly with respect to the value of the U.S.Dollar and the Euro;
(4) the Company’s ability to successfully implement its global footprint
initiative, including achieving cost reductions and other benefits in
connection with the restructuring of its manufacturing, engineering,
procurement and administrative organizations; (5) fluctuations in the price
and supply of raw materials including, without limitation, petroleum, copper,
steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or
shortages of materials, parts and components; (6) the inability of the
Company’s suppliers to deliver products at the scheduled rate and disruptions
arising in connection therewith; (7) the Company’s ability to maintain a
competitive technological advantage through innovation and leading product
designs; (8) the Company’s failure to maintain the value of its brands and
implementing a sufficient brand protection program; and (9) other risks
detailed in Harman International Industries, Incorporated Annual Report on
Form 10-K for the fiscal year ended June 30, 2013 and other filings made by
the Company with the Securities and Exchange Commission.The Company
undertakes no obligation to publicly update or revise any forward-looking
statement except as required by law.

This earnings release also makes reference to the Company’s awarded business,
which represents the estimated future lifetime net sales for all customers.
The Company's future awarded business does not represent firm customer orders.
The Company reports its awarded business primarily based on written award
letters. The Company calculates its awarded business using various assumptions
including global vehicle production forecasts, customer take rates for the
Company’s products, revisions to product life cycle estimates and the impact
of annual price reductions and exchange rates, among other factors. These
assumptions are updated on an annual basis. The Company updates the estimates
quarterly by adding the value of new awards received and subtracting sales
recorded during the quarter. These quarterly updates do not include any
assumptions for increased take rates, revisions to product life cycle, or any
other factors.

HAR-E


APPENDIX



Infotainment Division
                               
FY 2014 Key Figures –           Three Months Ended September 30
Infotainment
                                                       Increase
                                            
                                                       (Decrease)
                                                       Including     Excluding
                                   3M        3M
$ millions                                      Currency    Currency
                                   FY14      FY13
                                                       Changes       Changes^1
Net sales                       640     561     14%         10%
Gross profit                    141     128     10%         6%
Percent of net sales            22.1%   22.9%              
SG&A & Other                    109     84      30%         24%
Operating income                32      45      (27%)       (29%)
Percent of net sales            5.1%    8.0%               
EBITDA                          48      60      (19%)       (21%)
Percent of net sales            7.6%    10.7%              
Restructuring-related costs
and other non-                  22      0                  

GAAP items
Non-GAAP                                                 
Gross profit^(1)                143     128     11%         7%
Percent of net sales^(1)        22.3%   22.9%              
SG&A & Other^(1)                88      84      6%          1%
Operating income^(1)            55      45      21%         18%
Percent of net sales^(1)        8.5%    8.0%               
EBITDA^(1)                      69      60      15%         12%
Percent of net sales^(1)        10.8%   10.7%              
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this
release.
                               

Net sales in the first quarter of fiscal 2014 were $640 million, an increase
of 14 percent compared to the prior year, or 10 percent excluding the impact
of foreign currency translation. The increase in sales is due to higher
volumes from the Company’s recent production launches that continue to gain
traction and expand across car lines.

On a non-GAAP basis in the first quarter of fiscal 2014, gross margin
decreased 60 basis points to 22.3 percent primarily due to duplicative costs
as a result of footprint migration initiatives and higher launch-related
costs. SG&A spending decreased 110 basis points to 13.8 percent of net sales
primarily due to improved operating leverage on higher sales and higher
recoveries of project engineering costs.

Infotainment Division Highlights

During the quarter, HARMAN secured competitive replacement awards totaling
$1.3 billion from customers including Volkswagen, Daimler AG, Geely Motors and
Ssangyong Motor Company. Specifically, HARMAN will supply a global entry
infotainment system to a variety of Volkswagen models in high-growth markets
such as Brazil, Russia, India, and Mexico. The Company will also provide a 4G
connectivity solution across all Mercedes-Benz car lines globally.
Additionally, HARMAN will supply an entry navigation solution for Geely Motors
SUV vehicles in China.

HARMAN successfully started production on new Toyota programs in Europe. In
addition, after a successful multinational launch of the Mercedes S-Class
featuring HARMAN’s NTG5 infotainment system, Daimler extended the availability
of this vehicle into the Chinese market.

During the quarter, the Company announced a global agreement with Mazda to
equip the new 2014 Mazda3 with HARMAN’s cloud-based Aha platform, which will
enable drivers to select audio content from more than 40,000 internet channels
and radio from around the globe. The program will launch this fall in Japan,
the United States and a number of additional North American and Asian
countries on Mazda’s best-selling model.

In September, technology intelligence firm ABI Research named HARMAN the top
automotive Tier-1 supplier for connected infotainment solutions. The ABI
report noted that HARMAN outpaced its competition due to technology leadership
and global presence.

At the Frankfurt Auto Show in September, HARMAN demonstrated that it continues
to be a driving force in the car innovations of tomorrow. HARMAN technology
was prominent in prestigious vehicle premieres including the BMW i3 electric
car. HARMAN is the first company to develop and launch a customized
infotainment system that includes features specific to an electric vehicle
such as battery status, range assessment and charging station locations.


Lifestyle Division
                               
FY 2014 Key Figures –           Three Months Ended September 30
Lifestyle
                                                       Increase
                                            
                                                       (Decrease)
                                                       Including     Excluding
                                   3M        3M
$ millions                                      Currency    Currency
                                   FY14      FY13
                                                       Changes       Changes^1
Net sales                       334     292     15%         13%
Gross profit                    107     94      13%         12%
Percent of net sales            32.0%   32.3%              
SG&A & Other                    66      57      15%         14%
Operating income                41      37      11%         10%
Percent of net sales            12.3%   12.8%              
EBITDA                          50      45      10%         9%
Percent of net sales            14.8%   15.4%              
Restructuring-related costs
and other non-                  2       0                  

GAAP items
Non-GAAP                                                 
Gross profit^(1)                108     94      14%         13%
Percent of net sales^(1)        32.1%   32.3%              
SG&A & Other^(1)                65      57      13%         12%
Operating income^(1)            43      37      15%         14%
Percent of net sales^(1)        12.8%   12.7%              
EBITDA^(1)                      50      45      12%         12%
Percent of net sales^(1)        15.1%   15.4%              
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this
release.


Net sales in the first quarter of fiscal 2014 were $334 million, an increase
of 15 percent compared to the prior year or 13 percent excluding the impact of
foreign currency translation. Revenues increased due to strong sales growth in
the Company’s home and multimedia product lines and in the car audio business.

On a non-GAAP basis in the first quarter of fiscal 2014, gross margin
decreased by 20 basis points compared to the prior year to 32.1 percent
primarily due to product mix. SG&A expense as a percentage of sales decreased
by 20 basis points to 19.4 percent primarily due to improved operating
leverage on higher sales.

Lifestyle Division Highlights

The Lifestyle Division secured new car audio awards during the quarter, with
Toyota, Lexus, BMW and others selecting HARMAN’s JBL, Mark Levinson and Harman
Kardon audio solutions for a variety of their vehicle platforms.

During the quarter, the Company launched its cross-car line audio solution
with BMW. Harman Kardon Logic 7 systems are available in BMW 4-, 5- and
7-series, and X5 model vehicles. Additionally, HARMAN launched its first
compact car segment solution for the new Kia Sportage featuring
Infinity-branded audio.

At the IFA trade fair in Berlin, HARMAN introduced new products including
headphones, wireless audio and home entertainment solutions. Highlights from
the fair include: the premiere of LiveStage™ signal processing technology in
the JBL Synchros headphone line; the new JBL wireless portable line; and a
fully renewed Harman Kardon product line featuring state-of-the-art design and
acoustics.

Of 63 new products launched recently, HARMAN has received 39 awards for
technology, design, and innovation, including two Best Product Awards from the
European Imaging and Sound Association for the Harman Kardon Onyx portable
audio system and the AKG K935 wireless headphones.


Professional Division

FY 2014 Key Figures –           Three Months Ended September 30
Professional
                                                       Increase
                                            
                                                       (Decrease)
                                                       Including     Excluding
                                   3M        3M
$ millions                                      Currency    Currency
                                   FY14      FY13
                                                       Changes       Changes^1
Net sales                       197     144     37%         39%
Gross profit                    73      55      33%         34%
Percent of net sales            37.1%   38.4%              
SG&A & Other                    47      35      32%         32%
Operating income                26      20      34%         36%
Percent of net sales            13.4%   13.8%              
EBITDA                          31      23      38%         39%
Percent of net sales            15.7%   15.7%              
Restructuring-related costs
and other non-                  0       0                  

GAAP items
Non-GAAP                                                 
Gross profit^(1)                73      55      33%         34%
Percent of net sales^(1)        37.2%   38.5%              
SG&A & Other^(1)                46      35      31%         32%
Operating income^(1)            27      20      36%         37%
Percent of net sales^(1)        13.6%   13.8%              
EBITDA^(1)                      31      23      39%         41%
Percent of net sales^(1)        15.9%   15.7%              
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this
release.


Net sales in the first quarter of fiscal 2014 were $197 million, an increase
of 37 percent compared to the prior year or 39 percent excluding foreign
currency translation. The increase in net sales is due to the expansion of the
Company’s product portfolio into lighting as a result of the acquisition of
Martin Professional and stronger demand for the Company’s audio products.

On a non-GAAP basis in the first quarter of fiscal 2014, gross margin
decreased 130 basis points to 37.2 percent primarily due to lower gross
margins on lighting products. SG&A expense as a percentage of sales decreased
120 basis points to 23.5 percent due to improved operating leverage on higher
sales.

Professional Division Highlights

The Professional Division capitalized on demand for its audio and lighting
products for use at a wide range of live entertainment events and fixed-venue
installations worldwide.

In the developed markets, the Company’s professional solutions were again
featured at high profile events including the Emmy Awards and the MTV Video
Music Awards. The Company continues to gain market share in the emerging
markets with HARMAN system solutions being specified and delivered for a
growing number of facilities including the Coke Studio at MTV in Mumbai.
HARMAN audio systems were featured prominently across a number of events
including Brazil’s week-long Rock in Rio, the world’s largest music festival.

In October 2013, HARMAN completed its acquisition of Duran Audio B.V.
(“Duran”). The deal provides the Company with access to innovative
electro-acoustic and software-based directivity control technologies. These
core products and technologies, including the AXYS Intellivox line of
“steerable” columns, will become an integrated part of the HARMAN Professional
audio product lines.


Other (Corporate)
                                 
FY 2014 Key Figures – Other       Three Months Ended September 30
                                                       Increase
                                            
                                                       (Decrease)
                                                       Including     Excluding
                                     3M       3M
$ millions                                      Currency    Currency
                                     FY14     FY13
                                                       Changes       Changes^1
SG&A & Other                      31     23     35%         35%
Restructuring-related costs
and other non-                    0      0                 

GAAP items
Non-GAAP^1                                               
SG&A & Other                      31     23     35%         35%
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this
release.


Other (Corporate) SG&A expense includes compensation, benefit and occupancy
costs for corporate employees, new technology innovation, and expenses
associated with the Company’s brand identity campaign. During the first
quarter of fiscal 2014, SG&A & Other expense increased primarily due to higher
marketing and R&D costs.


HARMAN International Industries, Incorporated

Consolidated Statements of Income
                                                 
(In thousands, except earnings per share data;       Three Months Ended
unaudited)                                       
                                                     September 30,
                                                 2013          2012
Net sales                                         $ 1,171,805   $ 998,193
Cost of sales                                      850,156      719,946
Gross profit                                       321,649      278,247
Selling, general and administrative expenses       252,267      199,156
Operating income                                   69,382       79,091
Other expenses:                                                
Interest expense, net                              1,970        5,995
Foreign exchange losses, net                       861          151
Miscellaneous, net                                 1,329        1,179
Income before taxes                                65,222       71,766
Income tax expense , net                           18,676       17,211
Equity in loss of unconsolidated subsidiaries      94           0
Net income                                        $ 46,452      $ 54,555
Earnings per share:                                            
Basic                                             $ 0.67        $ 0.79
Diluted                                           $ 0.66        $ 0.79
Weighted average shares outstanding:                           
Basic                                              69,547       68,682
Diluted                                            70,371       69,471
                                                               


HARMAN International Industries, Incorporated

Consolidated Balance Sheets

                                           September 30,     June 30,
(In thousands; unaudited)                              
                                           2013              2013
ASSETS                                                 
Current assets                                         
Cash and cash equivalents               $  515,438      $ 454,258
Short-term investments                    0             10,008
Receivables, net                          794,868       722,711
Inventories                               614,334       549,831
Other current assets                      363,795       352,244
Total current assets                      2,288,435     2,089,052
Property, plant and equipment, net        431,752       425,182
Goodwill                                  236,960       234,342
Deferred tax assets, long term, net       239,477       260,749
Other assets                              231,895       226,360
Total assets                            $  3,428,519    $ 3,235,685
                                                      
LIABILITIES AND SHAREHOLDERS’ EQUITY                   
Current liabilities                                    
Current portion of long-term debt       $  30,000       $ 30,000
Short-term debt                           11,655        4,930
Accounts payable                          585,368       498,055
Accrued liabilities                       453,689       402,704
Accrued warranties                        141,466       128,411
Income taxes payable                      14,296        13,414
Total current liabilities                 1,236,474     1,077,514
Long-term debt                            247,540       255,043
Pension liability                         171,031       167,687
Other non-current liabilities             97,910        90,570
Total liabilities                         1,752,955     1,590,814
Total shareholders’ equity                1,675,564    $ 1,644,871
Total liabilities and equity            $  3,428,519    $ 3,235,685
                                                       


HARMAN International Industries, Incorporated

Consolidated Statement of Income

Reconciliation of GAAP to Non-GAAP Results

(In thousands, except earnings     Three Months Ended
per share data; unaudited)      
                                   September 30, 2013
                                GAAP          Adjustments   Non-GAAP
Net sales                        $ 1,171,805   $  0          $ 1,171,805
Cost of sales                     850,156     (2,049)^a      848,107
Gross profit                      321,649       2,049       323,698
Selling, general and              252,267     (21,986)^b     230,281
administrative expenses
Operating income                  69,382        24,035      93,417
Other expenses:                                            
Interest expense, net             1,970         0           1,970
Foreign exchange losses, net      861           0           861
Miscellaneous, net                1,329         0           1,329
Income from operations before     65,222        24,035      89,257
taxes
Income tax expense                18,676        3,621^c     22,297
Equity in loss of                 94            0           94
unconsolidated subsidiaries
Net income                       $ 46,452      $  20,414     $ 66,866
Earnings per share:                                        
Basic                            $ 0.67        $  0.29       $ 0.96
Diluted                          $ 0.66        $  0.29       $ 0.95
Weighted average shares                                    
outstanding:
Basic                             69,547                    69,547
Diluted                           70,371                    70,371
                                                            

   
a)   Restructuring expense in Cost of Sales was $2.0 million for projects to
     increase manufacturing productivity
b)   Restructuring expense in SG&A was $22.0 million primarily due to projects
     to increase productivity in engineering and administrative functions
     The tax expenses are calculated by multiplying the actual restructuring /
c)   non-recurring charge in each individual country by the discrete tax rate
     within that specific country.
     

HARMAN has provided a reconciliation of non-GAAP measures in order to provide
the users of these financial statements with a better understanding of its
non-recurring charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States. These
measurements should be considered in addition to, but not as a substitute for,
the information contained in HARMAN’s consolidated financial statements
prepared in accordance with US GAAP.


Harman International Industries, Incorporated

Reconciliation of GAAP to Non-GAAP Results

(In thousands, except earnings         Three Months Ended
per share data; unaudited)         
                                       September 30, 2012
                                   GAAP        Adjustments   Non-GAAP
Net sales                           $ 998,193   $    0        $ 998,193
Cost of sales                        719,946   (40)^a         719,906
Gross profit                         278,247       40        278,287
Selling, general and                 199,156   (188)^b        198,968
administrative expenses
Operating income                     79,091        228       79,319
Other expenses:                                             
Interest expense, net                5,995         0         5,995
Foreign exchange losses, net         151           0         151
Miscellaneous, net                   1,179         (27)      1,152
Income from operations before        71,766        255       72,021
taxes
Income tax expense                   17,211        63^c      17,274
Net income                          $ 54,555    $    192      $ 54,747
Earnings per share:                                         
Basic                               $ 0.79      $    0.01     $ 0.80
Diluted                             $ 0.79      $    0.00     $ 0.79
Weighted average shares                                     
outstanding:
Basic                                68,682                  68,682
Diluted                              69,471                  69,471
                                                             

    
(a)   Restructuring expense in Cost of Sales was $0.04 million due to projects
      to increase productivity in manufacturing.
(b)   Restructuring expense in SG&A was $0.2 million due to projects to
      increase productivity in engineering and administrative functions
      The tax expenses are calculated by multiplying the actual non-recurring
(c)   charge in each individual country by the discrete tax rate within that
      specific country.
      

HARMAN has provided a reconciliation of non-GAAP measures in order to provide
the users of these financial statements with a better understanding of its
non-recurring charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States. These
measurements should be considered in addition to, but not as a substitute for,
the information contained in HARMAN’s consolidated financial statements
prepared in accordance with US GAAP.


HARMAN International Industries, Incorporated

Selected Financial Data

Reconciliation of GAAP to Non-GAAP Results

Foreign Currency Translation Impact

                                    Three Months Ended              Increase
(In thousands; unaudited)                                     
                                    September 30,                   (Decrease)
                                2013          2012         
Net sales – nominal currency     $ 1,171,805   $ 998,193     17    %
Effect of foreign currency                     26,345      
translation^(1)
Net sales - local currency        1,171,805    1,024,538   14    %
                                                          
Gross profit – nominal            321,649      278,247     16    %
currency
Effect of foreign currency                     5,352       
translation^(1)
Gross profit – local currency     321,649      283,599     13    %
                                                          
SG&A & Other – nominal            252,267      199,156     27    %
currency
Effect of foreign currency                     4,171       
translation^(1)
SG&A & Other – local currency     252,267      203,327     24    %
                                                          
Operating income – nominal        69,382       79,091      (12   )%
currency
Effect of foreign currency                     1,181       
translation^(1)
Operating income – local          69,382       80,272      (14   )%
currency
                                                          
Net income – nominal currency     46,452       54,555      (15   )%
Effect of foreign currency                     1,298       
translation^(1)
Net income – local currency       46,452       55,853      (17   )%
                                                          
(1) Impact of restating prior year results at current year foreign exchange
rates.


HARMAN has provided a reconciliation of the non-GAAP measures in the table
above to provide the users of the financial statements with a better
understanding of the Company’s performance. Because changes in currency
exchange rates affect its reported financial results, the Company shows the
rates of change both including and excluding the effect of these changes in
exchange rates. HARMAN encourages readers of its financial statements to
evaluate its financial performance excluding the impact of foreign currency
translation. These non-GAAP measures are not measurements under accounting
principles generally accepted in the United States. This measurement should be
considered in addition to, but not as a substitute for, the information
contained in HARMAN’s consolidated financial statements prepared in accordance
with US GAAP.

                                                              
HARMAN International Industries, Incorporated

Selected Financial Data

Reconciliation of Non-GAAP Results

Foreign Currency Translation Impact
                                                             
EXCLUDING restructuring and
non-recurring charges               Three Months Ended
                                                                 Increase
                                   September 30,
                                                                    (Decrease)
(In thousands; unaudited)
                                2013          2012         
Net sales – nominal currency     $ 1,171,805   $ 998,193     17    %
Effect of foreign currency                     26,345      
translation^(1)
Net sales – local currency        1,171,805    1,024,538   14    %
                                                          
Gross profit - nominal            323,698      278,287     16    %
currency
Effect of foreign currency                     5,352       
translation^(1)
Gross profit - local currency     323,698      283,639     14    %
                                                          
SG&A & Other – nominal            230,281      198,968     16    %
currency
Effect of foreign currency                     4,171       
translation^(1)
SG&A & Other – local currency     230,281      203,139     13    %
                                                          
Operating income – nominal        93,417       79,319      18    %
currency
Effect of foreign currency                     1,181       
translation^(1)
Operating income – local          93,417       80,500      16    %
currency
                                                          
Net income – nominal currency     66,866       54,747      22    %
Effect of foreign currency                     1,298       
translation^(1)
Net income – local currency       66,866       56,045      19    %
                                                          
(1) Impact of restating prior year results at current year foreign exchange
rates.


HARMAN has provided a reconciliation of the non-GAAP measures in the table
above to provide the users of the consolidated financial statements with a
better understanding of the Company’s performance. Because changes in currency
exchange rates affect its reported financial results, the Company shows the
rates of change both including and excluding the effect of these changes in
exchange rates. The Company encourages readers of its financial statements to
evaluate its financial performance excluding the impact of foreign currency
translation. These non-GAAP measures are not measurements under accounting
principles generally accepted in the United States. This measurement should be
considered in addition to, but not as a substitute for, the information
contained in HARMAN’s consolidated financial statements prepared in accordance
with US GAAP.


Harman International Industries, Incorporated

Reconciliation of GAAP to Non-GAAP Results

(In thousands, except earnings per        Three Months Ended
share data; unaudited)                
                                          September 30, 2013
                                      GAAP      Adjustments   Non-GAAP
HARMAN:                                                      
Operating Income                       69,382    24,035       93,417
Depreciation & Amortization            31,713    (2,020   )    29,693
EBITDA                                 101,095   22,015       123,110
INFOTAINMENT:                                                
Operating Income                       32,427    22,082       54,509
Depreciation & Amortization            16,042    (1,350   )    14,692
EBITDA                                 48,469    20,732       69,201
LIFESTYLE:                                                   
Operating Income                       41,240    1,503        42,743
Depreciation & Amortization            8,294     (621     )    7,673
EBITDA                                 49,534    882          50,416
PROFESSIONAL:                                                
Operating Income                       26,480    450          26,930
Depreciation & Amortization            4,509     (49      )    4,460
EBITDA                                 30,989    401          31,390
                                                              

HARMAN has provided a reconciliation of non-GAAP measures in order to provide
the users of these financial statements with a better understanding of its
non-recurring charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States. These
measurements should be considered in addition to, but not as a substitute for,
the information contained in HARMAN’s consolidated financial statements
prepared in accordance with US GAAP.


Harman International Industries, Incorporated

Reconciliation of GAAP to Non-GAAP Results

(In thousands, except earnings per        Three Months Ended
share data; unaudited)                
                                          September 30, 2012
                                      GAAP      Adjustments   Non-GAAP
HARMAN:                                                      
Operating Income                       79,091    228          79,319
Depreciation & Amortization            28,544    (40     )     28,504
EBITDA                                 107,635   188          107,823
INFOTAINMENT:                                                
Operating Income                       44,674    270          44,944
Depreciation & Amortization            15,240    0            15,240
EBITDA                                 59,914    270          60,184
LIFESTYLE:                                                   
Operating Income                       37,259    (133    )     37,126
Depreciation & Amortization            7,737     0            7,737
EBITDA                                 44,996    (133    )     44,863
PROFESSIONAL:                                                
Operating Income                       19,771    91           19,862
Depreciation & Amortization            2,761     (40     )     2,721
EBITDA                                 22,532    51           22,583
                                                              

HARMAN has provided a reconciliation of non-GAAP measures in order to provide
the users of these financial statements with a better understanding of its
non-recurring charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States. These
measurements should be considered in addition to, but not as a substitute for,
the information contained in HARMAN’s consolidated financial statements
prepared in accordance with US GAAP.


HARMAN International Industries, Incorporated

Total Liquidity Reconciliation
                                                  
Total Company Liquidity                            September 30,

$ millions                                         2013
Cash & cash equivalents                            $515
Available credit under Revolving Credit Facility   743
Total liquidity                                    $1,258
                                                     

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Contact:

HARMAN
Sandy Rowland, 203-328-3500
sandy.rowland@harman.com