Harman beats Street as demand grows for car audio systems

Audio equipment maker Harman International Industries Inc, whose brands include JBL and Harman Kardon, reported better-than-expected quarterly results as demand rose for its vehicle systems. Harman's biggest business, which provides integrated navigation, entertainment and communication systems, reported a four per cent rise in revenue.

The business caters to luxury carmakers such as Daimler AG, Fiat SpA's Ferrari sports cars and Volkswagen's Audi brand.

Sales to German carmakers accounted for 43 per cent of Harman's revenue for the year ended June 2012, with the rest of Europe bringing in another 20 per cent.

Net income fell to $5.5 million, or 8 cents per share, in the fourth quarter, from $49.3 million, or 69 cents per share, a year earlier. Harman recorded restructuring and other charges of $72 million in the quarter, related to the divestiture of a manufacturing operation in Germany and customs duties.

The company earned 91 cents per share on an adjusted basis.

Revenue rose 8 per cent to $1.18 billion.

Analysts on average had expected earnings of 86 cents per share on revenue of $1.14 billion, according to Thomson Reuters I/B/E/S.