Audio products maker Harman's second-quarter profit beats Street

Reuters News
|
Posted: Jan 28, 2016 8:15 AM

(Reuters) - Harman International Industries Inc <HAR.N>, whose brands include JBL and Harman Kardon audio systems, reported a better-than-expected quarterly profit, helped by strong demand from automakers.

Shares of Harman, which supplies to global carmakers including Fiat Chrysler Automobiles NV <FCAU.N> and BMW <BMWG.DE>, rose 2 percent to $81.25 in premarket trading on Thursday.

Revenue from Harman's connected car business, its biggest and that includes navigation and safety systems, rose 2.1 percent to $737 million in the second quarter, from a year earlier.

Revenue from the lifestyle division rose 20.4 percent to $625 million, helped by new orders from companies such as Audi, BMW, and Volvo.

The lifestyle division makes audio and video products for homes and cars under the JBL and Harman Kardon brands.

Net income attributable to Harman fell to $113 million, or $1.55 per share, in the quarter ended Dec. 31, from $116 million, $1.65 per share, a year earlier.

Excluding items, the company earned $1.84 per share, above the average analyst estimate of $1.80, according to Thomson Reuters I/B/E/S.

Net sales rose to $1.77 billion from $1.58 billion, missing estimates of $1.80 billion.

(Reporting by Kshitiz Goliya in Bengaluru; Editing by Anil D'Silva and Maju Samuel)