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Harman International Industries Inc. Reports Operating Results (10-K)

August 10, 2012 | About:

10qk

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Harman International Industries Inc. (HAR) filed Annual Report for the period ended 2012-06-30.

Harman International Industries Inc./de/ has a market cap of $2.84 billion; its shares were traded at around $43.93 with a P/E ratio of 15.5 and P/S ratio of 0.8. The dividend yield of Harman International Industries Inc./de/ stocks is 0.7%.

Highlight of Business Operations:

Selling, general and administrative expenses (SG&A) were $884.2 million in fiscal year 2012 compared to $813.8 million in the prior fiscal year, an increase of $70.4 million. The increase in SG&A was primarily due to higher research and development (R&D) expenses of $27.2 million and higher selling and advertising expenses, partially offset by favorable foreign currency translation of $9.1 million and the receipt of $4.0 million of business interruption insurance proceeds related to the Japanese earthquake and tsunami. As a percentage of net sales, SG&A decreased 1.3 percentage points to 20.3 percent in fiscal year 2012 compared to the prior fiscal year. R&D expenses were $331.9 million, or 7.6 percent of net sales, in fiscal year 2012 compared to $304.6 million, or 8.1 percent of net sales, in the prior fiscal year.

SG&A were $813.8 million in fiscal year 2011 compared to $774.2 million in the prior fiscal year, an increase of $39.6 million. The increase in SG&A was primarily due to higher overall selling and marketing expenses and SG&A attributable to Harman do Brasil, partially offset by favorable foreign currency translation of $7.6 million and a $5.9 million decrease in charges for claims related to infotainment supply arrangements compared to the prior fiscal year. As a percentage of net sales, SG&A decreased 1.4 percentage points to 21.6 percent in fiscal year 2011 compared to the prior fiscal year. R&D expenses were $304.6 million, or 8.1 percent of net sales, in fiscal year 2011 compared to $322.7 million, or 9.6 percent of net sales, in the prior fiscal year.

InfotainmentInfotainment SG&A increased $32.7 million to $377.1 million in fiscal year 2012 compared to the prior fiscal year. The increase in SG&A was primarily due to $29.2 million of higher R&D expenses, partially offset by favorable foreign currency translation of $5.7 million. As a percentage of net sales, SG&A decreased 0.8 percentage points to 15.7 percent in fiscal year 2012 compared to the prior fiscal year. R&D expenses increased $29.2 million to $231.0 million, or 9.6 percent of net sales in fiscal year 2012, compared to $201.8 million, or 9.7 percent of net sales in the prior fiscal year. The increase in R&D expenses was primarily related to new product launches.

Infotainment SG&A decreased $5.9 million to $344.4 million in fiscal year 2011 compared to the prior fiscal year. The decrease in SG&A was primarily due to a net decrease in R&D expenses of $23.0 million, favorable foreign currency translation of $4.8 million and a $5.9 million decline in charges related to infotainment supply arrangements, partially offset by higher general and administrative expenses. As a percentage of net sales, SG&A decreased 2.6 percentage points to 16.5 percent in fiscal year 2011 compared to the prior fiscal year. R&D expenses decreased $23.0 million to $201.8 million, or 9.7 percent of net sales in fiscal year 2011 compared to $224.8 million, or 12.2 percent of net sales in the prior fiscal year.

LifestyleLifestyle SG&A increased $4.8 million to $241.0 million in fiscal year 2012 compared to the prior fiscal year. The increase in SG&A was primarily due to higher selling expenses, increased start-up costs in emerging markets and the addition of MWM Acoustics. These increases were partially offset by the receipt of $4.0 million of business interruption insurance proceeds related to the Japanese earthquake and tsunami and favorable foreign currency translation of $2.6 million. As a percentage of net sales, SG&A decreased 3.6 percentage points to 18.1 percent in fiscal year 2012 compared to the prior fiscal year. R&D expenses increased $2.1 million to $58.3 million, or 4.4 percent of net sales in fiscal year 2012, compared to $56.3 million, or 5.2 percent of net sales in the prior fiscal year.

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