Harman's 2Q profit, revenue beat expectations
Shares of high-end speaker and headphone maker Harman International Industries Inc. surged on Thursday after the company reported better-than-expected second-quarter profit and revenue.
The company also said that lower engineering costs coupled with higher sales and improved productivity resulted in higher margins.
The stock rose $6.46, or 14.9 percent, to $49.96 during midday trading Thursday.
The company, based in Stamford, Conn., earned $53.1 million, or 74 cents per share, during the quarter that ended Dec. 31. That compares with year-earlier earnings of $13.4 million, or 19 cents per share.
Excluding restructuring and tax charges, the company said it earned 79 cents per share. Analysts polled by FactSet were expecting 53 cents per share. Analysts typically exclude one-time items from their estimates.
Revenue rose to $956.1 million from $928.3 million. Analysts predicted $953.2 million.
During the quarter, Toyota Motor Corp. showed off cars featuring Harman's audio technology. The company also said it signed a "significant" agreement with the Volkswagen Group.
Also during the quarter, Harman began building a factory in Dandong, China, which will serve the company's automotive, professional and consumer divisions by this summer. It also plans to expand its presence in Hungary and Mexico. Harman also decided to close its Washington, Mo. plant by 2012, shifting some production to Harman's Franklin, Ky., facility.
The company did not issue any forecast.