RadioandMusic
| 25 Jun 2019
Harman International witness increase in net sales; Lifestyle audio sales up

MUMBAI: Audio equipment company, Harman International industries, witnessed an increase of 14 per cent including currency changes (23 per cent increase excluding currency changes), from $1.4 billion in Q1 2015 (ending on 30 September) to $1.6 billion in Q1 2016.

The net sales for lifestyle audio witnessed a rise of 14 per cent (21 percent increase excluding currency changes), which can be attributed to higher consumer audio and car audio sales. In Q1 2015-2016, net sales were $462 million from $406 million same period last year owing to the release of new products in the customer audio category and its $156 million acquisition of the Bang & Olufsen car audio business.

This quarter, the company tied-up with Audi, BMW, Great Wall, Hyundai and Toyota among others, which gave Harman new business. Harman provided Alfa Romeo Giulia (Harman/Kardon), the Lexus RX (Mark Levinson), and the McLaren 570S (Bowers & Wilkins), for the newly launched cars in the quarter. In September, Harman debuted 58 new products at the IFA consumer electronics trade show in Berlin. In the quarter, the Company launched its third generation of portable speakers, expanding its portfolio with the JBL Xtreme.

The professional solutions category of the company witnessed a fall of three per cent in Q1 2016 compared to the same period last year. iHeartRadio Music Festival in Las Vegas, and the Rock in Rio in Brazil were powered by Harman solutions, along with notable projects like the Changi Airport in Singapore and a large enterprise control and automation project for Raytheon.

Operating income witnessed 14 per cent rise and EBITDA increased by 23 per cent to $188 million compared to $153 million in the prior year. The Company recorded $26 million of restructuring, non-recurring charges and acquisition-related items compared to $12 million in the prior year.

Harman chairman, president and CEO Dinesh C. Paliwal said, ôHarman is off to a solid start to deliver on our fiscal 2016 targets with double-digit revenue and earnings growth in the first quarter, driven by robust demand for connected systems and services in the car. Demand from automakers for embedded infotainment and car audio solutions remains strong as evidenced by the $1.1 billion in new automotive awards in the quarter, building on our industry-leading backlog of $23 billion as of the end of fiscal 2015.ö