WASHINGTON (dpa-AFX) - Audio systems maker Harman International Industries Inc. (HAR) reported Monday a sharp increase in third-quarter profit, as revenues grew 16 percent from last year. Both earnings per share and top line beat analysts' expectations. Harman shares rose about 10 percent in the morning trade.
In the third quarter, the company's net income surged to $172.66 million or $2.38 per share from $36.60 million or $0.51 per share in the same quarter last year. The company said that release of a deferred tax asset valuation allowance increased earnings per share by $1.71 to $2.38.
On an adjusted basis, earnings per share increased to $0.74 from $0.60 per share last year. On average, 4 analysts polled by Thomson Reuters expected the company to earn $0.67 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 16 percent to $1.1 billion from $948.20 million in the prior-year quarter, which also exceeded analysts' estimate of $1.04 billion. Excluding currency changes, the growth was 19 percent.
Infotainment division net sales were $610 million, an increase of 15 percent or 19 percent in local currency. In Lifestyle division, net sales in the third quarter were $332 million, up 20 percent or 22 percent in local currency. Professional division net sales grew 8 percent and excluding currency changes, the growth was 9 percent.
Gross margin, on an adjusted basis, increased 40 basis points to 26.8 percent. The company attributed the increase to better leverage of fixed costs on higher sales and productivity improvements in the cost base.
Harman International also declared a cash dividend of $0.075 cents per share for the third quarter. The quarterly dividend will be paid on May 24, to stockholders of record on May 10, 2012.
HAR is currently trading at $51.41, up $4.15 or 8.78 percent, on a volume of 459 thousand shares on the NYSE.
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