Harman International Industries, Inc. Business Report FY ended Jun. 2014

Business Highlights

Financial Overview

(in million USD)
  FY ended Jun. 30, 2014 FY ended Jun. 30, 2013 Rate of Change (%) Factors
Sales 5,348.5 4,297.8 24.5 -Increased contracts for infotainment business
-Incremental sales from acquisition
-Favorable foreign currency translation
Operating profit 329.7 201.3 63.8 -
Sales 2,838.9 2,283.2 24.3 -Higher automotive production volumes and take rates
-Favorable foreign currency translation
Operating profit 195.4 90.8 115.2
Sales 1,656.1 1,338.4 23.7 -Higher automotive production volumes and take rates
Operating profit 170.5 137.5 24.0 -

Major Contracts

<Fiscal year ended June 30, 2014>
 Product Maker/Model
Infotainment system Changan Automobile "Raeton", "Cinturx"
Great Wall
Clari-Fi-enabled Mark Levinson surround sound audio system 2015 Toyota "Lexus NX"
Harman Kardon Logic 7 surround sound audio system 2015 BMW "M4 Convertible"
Harman Kardon GreenEdge audio system 2015 Subaru "Outback"
Harman Kardon premium audio system 2015 Chrysler "Dodge Challenger"
Infinity premium audio system 2015 Hyundai "Sonata"
2015 Kia "Sedona"
JBL GreenEdge audio system 2015 Toyota "Camry"
JBL professional audio system Ferrari "F12berlinetta"
Infotainment system "Connected Media Center" Ferrari "California T"
Aha Radio service 2015 Subaru "Legacy (North America)"
2015 Hyundai "Genesis (North America)"
17-speaker premium Lexicon sound system 2015 Hyundai "Genesis (North America)"
Infotainment system "Audi MMI Navigation Plus" 2014 Audi "A6 TDI"
Telematics control unit (TCU) Daimler
MEMS (Micro-Electrical-Mechanical System) microphones Daimler


R&D Expenditure

(in million USD)
  FY ended Jun. 30, 2014 FY ended Jun. 30, 2013 FY ended Jun. 30, 2012
Overall 343.8 285.3 331.9

R&D Facilities

-The Company has announced that it will be opening a new development office in Turin, Italy, that will also serve as a regional sales office. By opening its own office, the Company will not only be able to test its products locally, but also be able to work more closely with engineers at Fiat on developing advanced audio and infotainment systems for the European market. (From a press release on June 26, 2014)

-The Company announced that it will establish a Global Development Center to develop audio and infotainment systems in Suzhou, China. Groundbreaking will take place on a 10,000-square-meter plot in June 2014, and the new facility is expected to be completed by the middle of 2015. The Company plans to invest USD 16 million in the first phase of this project. The development center will initially hire 200 employees, and is planning to increase the workforce to around 350 employees in the future. (From news releases issued by multiple sources on April 24, 2014)

Product Development

Connected Media Center (CMC) infotainment system
-The Company is bringing a newly-designed Connected Media Center (CMC) infotainment system to the Ferrari "California T". With its 6.5" touchscreen, the CMC system offers easier access to a rich choice of entertainment, navigation and communication options. The system can also be voice-controlled, enabling drivers to make phone calls, send mail and text messages, give navigation instructions and play music without taking their hands off the wheel or their eyes off the road. (From a press release on March 5, 2014)

Next-generation scalable in-vehicle infotainment platform
-The Company is staging the European premiere of its new next-generation scalable in-vehicle infotainment platform. Based on innovative system architecture, the platform enables rapid development of connected car apps while protecting the integrity of the system against cyber security threats. This next-generation architecture also integrates advanced driver assist functions such as Forward Collision Warning, Lane Departure Warning, and other safety features into the infotainment system. The Company's new infotainment platform is ready for vehicle implementation, and is expected to be on the road within the next two years. (From a press release on March 4, 2014)

New software "Clari-Fi"
-The Company announced a new software solution which automatically analyzes and improves the audio quality of compressed, digitized music sources. The technology, called Clari-Fi, leverages the Company's experience in music recording, signal processing and psychoacoustics to naturally restore the full sound that is forfeited in the compression process. Clari-Fi can be integrated into any Company in-car audio system via the amplifier or head unit. It is available to all automakers and also will begin launching in vehicles in 2014. (From a press release on March 4, 2014)

Investment Activities

Capital Expenditure

(in million USD)
  FY ended Jun. 30, 2014 FY ended Jun. 30, 2013 FY ended Jun. 30, 2012
Infotainment 91.5 54.4 66.1
Lifestyle 43.0 25.6 24.5
Professional 12.5 11.8 10.2
Other 10.1 9.9 11.8
Total 157.1 101.7 112.5