Harman International Industries Inc raised its full-year forecast for the second time after strong sales of its infotainment systems to European luxury carmakers such as BMW and Volkswagen helped it report a better-than-expected quarterly profit.
The company, whose brands include JBL and Harman Kardon, said it now expects adjusted earnings of about $4.36 a share on revenue of about $5.28 billion for the year ending June.
It raised its adjusted earnings forecast in January to about $4.16 per share on revenue of about $5.1 billion.
“There is pent up demand, particularly in Europe, which we expect will stabilize in the coming quarters,” Chief Executive Dinesh Paliwal said in a statement.
Recovering demand from Europe and growing demand for luxury cars in China helped most luxury carmakers register record deliveries and strong results for the first quarter.
Record sales of luxury Audis and Porsches boosted Volkswagen’s first-quarter operating profit by 22 percent, while BMW posted a new high in vehicle deliveries in the quarter, helped by increased demand across all regions for its sports utility vehicles.
German carmakers accounted for 34 percent of Harman’s revenue for the year ended June 2013, with rest of Europe bringing in another 19 percent.
Revenue in Harman’s infotainment business, which provides integrated navigation, entertainment and communication systems to carmakers, rose 29 percent to $736 million in the third quarter, from a year earlier. The business is the company’s biggest revenue generator.
Net income rose to $73.4 million, or $1.05 per share, in the quarter ended March 31, from $34.9 million, or 50 cents per share.
Excluding items, the company earned $1.12 per share.
Revenue rose 32 percent $1.40 billion.
Analysts on average had expected earnings of $1.00 per share on revenue of $1.27 billion, according to Thomson Reuters I/B/E/S. (Reuters)