Harman Falls Most Since 2011 as Strong Dollar Damps Salesby
Infotainment system maker's earnings per share beat estimates
Auto-related companies cite currency headwinds in quarter
Harman International Industries Inc., a maker of automotive infotainment systems, declined the most in more than four years after the company said the dollar’s strength sapped sales during its most recent quarter.
Revenue in its fiscal second quarter ended Dec. 31 climbed 12 percent to $1.77 billion but would have increased 19 percent excluding currency changes, the company said in a statement Thursday. Harman’s adjusted profit of $1.84 a share beat the $1.73 average of 11 analyst estimates compiled by Bloomberg
“Despite the foreign currency headwinds and broad macroeconomic uncertainty, we have performed well,” Chief Financial Officer Sandra Rowland told analysts on a conference call.
The company gets about 70 percent of its revenue outside the U.S. The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major counterparts, rose 19 percent during the quarter through December.
The shares fell 13 percent to $69.01 at the close in New York for the Stamford, Connecticut-based company’s biggest daily decline since August 2011.
Other auto-related companies also cited the currency effect in their quarterly results.
Lear Corp., the second-largest maker of auto seating, said its sales rose 4 percent from a year earlier and would have climbed 11 percent excluding the impact of foreign-exchange rates. The company’s shares slid 1 percent to $101.02, even as it reported profit of $3.20 a share, exceeding the $2.87 average of 17 estimates.