Audio and electronic product company Harman International Industries, Inc. (HAR), Wednesday said it slipped to a loss in the fourth quarter on hefty restructuring costs and charges, as well as a 37% plunge in revenues. Revenue decrease was attributed to declines in the all three sales divisions, mainly in the automotive segment, reflecting the continuing effect of global economic recession.
For the fourth quarter, net loss of the Stamford, Connecticut-based company was $62.36 million or $1.05 per share, compared to a profit of $31.73 million or $0.54 per share in the same quarter a year ago.
Results for the quarter includes restructuring cost totaling $46 million related to the closure of manufacturing facilities, good will impairment charge of 3 million, while in the prior year quarter restructuring charge of the company was $12 million. Excluding items, non-GAAP loss was $26.95 million or $0.45 per share, compared to non-GAAP earnings of $39.74 million or $0.68 per share for the year ago quarter.
On average, four analysts polled by Thomson Reuters expected a loss of $0.60 per share for the quarter. Analysts' estimate typically excludes one-time charges. Net sales for the quarter plunged 37% to $667.68 million from $1.07 billion in the same period a year ago, missing Street estimates of $669.26 million. Excluding foreign currency translation, net sales were down 32%.
Segment wise, Automotive division net sales plunged 40% to $465.5 million, Consumer net sales dropped 37% to $70.0 million, while Professional Net sales decreased 26% to $124.3 million from the comparable quarter last year.
In the preceding quarter, Harman International posted a third quarter loss that widened to $63.91 million or $1.09 per share, hurt by a 42% slump in revenue and charges. Sales for the quarter were $598 million.
For the quarter under review, operating loss was $82.71 million, compared to operating income of $42.82 million in the prior year.
The company said it has achieved $190 million in sustainable savings through June 30, 2009, compared to a target of $144 million. For the fiscal year 2009, net loss was $422.55 million or $7.19 per share, compared to earnings of $107.78 million or $1.73 per share last year. Non-GAAP loss for the year was $59.06 million or $1.01 per share, compared to earnings of $146.33 million or $2.35 per share a year ago. Net sales for the year were $2.89 billion, a decrease of 30% compared to $4.11 billion in the prior-year. Analysts' expected a loss of $1.11 per share on revenues of $2.89 billion for the year.
On June 18, 2009, brokerage Robert W. Baird, downgraded Harman shares to 'Underperform' from 'Neutral,' with a mean target of 13.67.
HAR closed Wednesday's regular trading at $27.07, up $0.19 or 0.71%, on the NYSE. In the last 52-week period, the stock traded in the range of $9.17 or 36.84, with a three-month average volume of 2.08 million shares.
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