Harman International Industries (HAR) has reported 18.39 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $103.12 million, or $1.45 a share in the quarter, compared with $87.10 million, or $1.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $133.59 million, or $1.87 a share compared with $107.02 million or $1.48 a share, a year ago.
Revenue during the quarter grew 7.89 percent to $1,759.52 million from $1,630.89 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 30.76 percent. Total expenses were 91.43 percent of quarterly revenues, down from 91.94 percent for the same period last year. This has led to an improvement of 51 basis points in operating margin to 8.57 percent.
Operating income for the quarter was $150.81 million, compared with $131.47 million in the previous year period.
However, the adjusted operating income for the quarter stood at $187.50 million compared to $157.93 million in the prior year period. At the same time, adjusted operating margin improved 97 basis points in the quarter to 10.66 percent from 9.68 percent in the last year period.
"HARMAN delivered a solid first quarter, with strong revenue growth and outstanding EBITDA and EPS performance. We secured $2 billion in new automotive awards in the quarter, demonstrating increasing demand from automakers and their drivers for a rich in-car experience, including embedded infotainment, cloud connectivity and sound management solutions. With cyber security an underlying and fundamental component of the connected car and autonomous driving, I am proud to add that NHTSA and the University of Michigan rated HARMAN’s suite of intrusion detection and mitigation technologies as the best performing solution," said Dinesh C. Paliwal, the Company’s chairman, president and chief executive officer.
Working capital increases sharplyHarman International Industries has recorded an increase in the working capital over the last year. It stood at $1,101.23 million as at Sep. 30, 2016, up 39.17 percent or $309.94 million from $791.29 million on Sep. 30, 2015. Current ratio was at 1.57 as on Sep. 30, 2016, up from 1.38 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 48 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 31 days for the quarter compared with 62 days for the previous year period. At the same time, days payable outstanding went down to 70 days for the quarter from 72 for the same period last year.
Debt increases substantiallyHarman International Industries has witnessed an increase in total debt over the last one year. It stood at $1,335.51 million as on Sep. 30, 2016, up 25.49 percent or $271.25 million from $1,064.26 million on Sep. 30, 2015. Total debt was 21.67 percent of total assets as on Sep. 30, 2016, compared with 18.31 percent on Sep. 30, 2015. Debt to equity ratio was at 0.53 as on Sep. 30, 2016, up from 0.45 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
