Harman International Industries Inc. / HAR

About Harman International Industries Inc.

1101 Pennsylvania Ave. NW, Suite 1010, Washington, D.C. 20004
www.harman.com | 202-393-1101 | Founded: 1980

Industry: Manufacturing | Category: Public Companies

For the past decade or so, Harman's focus has been developing high-end electronic systems for luxury cars. Its latest big project was an "infotainment" console for the Mercedes-Benz S-Class, launched in November in Europe; the technology hit the United States at the start of this year. The device plays MP3s and DVDs, handles climate control and navigation, boasts surround-sound speakers and has a 20-gigabyte hard drive.
But though automotive sales are crucial to the company — in fiscal 2005, it began reporting that business as a separate segment — Harman has also developed new consumer and professional products.
One of its biggest hits last year was the Harman/Kardon Drive + Play, which takes advantage of the meteoric rise of Apple's iPod. The Drive + Play is an iPod car adapter that connects to the car stereo and pumps music through the vehicle's sound system. Another iPod accessory, the JBL On Time alarm clock, was unveiled in February.
Still, Harman's bread-and-butter business is the automotive industry. That could prove problematic if vehicles sales drop, and the industry is particularly vulnerable to economic downturns. The company last year signed $1.5 billion in deals with Audi, Porsche, BMW, Chrysler and Peugeot. Analysts are also wary of the amount of money the company spends in research and development.
But overall, the company received high marks from Wall Street over the past year, with Bear, Sterns & Co. labeling it a "juggernaut."
In February of this year, the company's stock jumped with its inclusion in the benchmark Standard & Poor's 500-stock index. Top executives used the jump as an opportunity to sell more than $225 million in stock. Founder and executive chairman Sidney Harman sold 1 million shares, at about $100 each. He still holds 3.5 million shares.
On April 26, as the company announced earnings and revenue that fell short of expectations, it also announced it was naming a new chief executive, effective May 1. He is Douglas A. Pertz, formerly chief executive of IMC Global, a producer and marketer of phosphate and potash nutrients for the agriculture industry. He replaces Bernard A. Girod, who resigned but remains on the board of directors.

Executive chairman and CEO: Sidney Harman

CFO: Kevin Brown

2005 Financial Data

Revenues: $3,030,889,000 | Net Income: $232,848,000
Asssets: $2,187,203,000 | Earnings Per Share: $3.31
Stockholder Equity: $1,060,948,000 | Annual Dividend: $0.05
Total employees: 10,845 | Local employees: 20