* Raises 2014 adj earnings forecast to $4.36/share from
* Third-quarter adj earnings $1.12/share vs est $1.00
* Revenue $1.40 bln vs est $1.27 bln
(Adds CEO comments, updates share movement)
By Sruthi Ramakrishnan
May 1 Harman International Industries Inc
raised its full-year forecast for the second time on
strong demand for its audio and navigation systems from European
Harman shares rose as much as 5 percent in morning trading,
but later fell 2 percent.
The company, whose brands include JBL and Harman Kardon,
said it now expects adjusted earnings of about $4.36 per share
on revenue of about $5.28 billion for the year ending June.
It had raised its adjusted earnings forecast in January to
about $4.16 per share on revenue of about $5.1 billion.
Harman won a $100 million deal with Japan's No. 3 mobile
carrier Softbank Corp in February to provide Bluetooth
wireless speakers, Chief Executive Dinesh Paliwal told Reuters.
The company is also trying to win orders from mid-level
carmakers in China, the world's largest auto market where
Harman's sales grew 60 percent in the quarter, Paliwal said.
"All the orders we've received in China have come from that
(mid-level) platform," he said, naming Geely Automobile Holdings
Ltd, Great Wall Motor Co Ltd and Chang'An
among its Chinese customers.
The company expected demand to stabilize in Europe, Paliwal
said in a statement on Thursday.
Harman got 34 percent of its revenue from German carmakers,
such as BMW AG and Volkswagen AG, in the
year ended June 2013. Rest of Europe brought in another 19
Recovering demand from Europe and growing demand for luxury
cars in China helped most luxury carmakers register record
deliveries and strong results for the first quarter.
Record sales of luxury Audis and Porsches boosted
Volkswagen's first-quarter operating profit by 22 percent, while
BMW posted a new high in vehicle deliveries in the quarter,
helped by increased demand across all regions for its sports
Sales in Harman's Infotainment business, which provides
integrated navigation, entertainment and communication systems
to carmakers, rose 29 percent to $736 million in the third
quarter ended March 31.
The business is the company's biggest revenue generator.
Total revenue rose 32 percent $1.40 billion.
Net income jumped to $73.4 million, or $1.05 per share, in
the quarter ended March 31, from $34.9 million, or 50 cents per
The company which is providing audio systems for the
upcoming Disney theme park in China, earned $1.12 per share
Analysts on average had expected earnings of $1.00 per share
on revenue of $1.27 billion, according to Thomson Reuters
Harman shares jumped to their six-year high of $115 in early
morning trading on the New York Stock Exchange on Thursday
before changing course. It was down nearly 2 percent at $107.72
in late morning trading.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Maju
Samuel and Joyjeet Das)