HARMAN net sales rise 14% in first fiscal quarter

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Harman International Industries has reported net sales of $1.6 billion (£1.05bn) in the first quarter of its 2016 fiscal year.

The connected technologies company saw a 23% increase in net sales, excluding the currency impact. Excluding the impact of foreign currency translation as well as acquisitions, net sales rose 13%.

Connected car net sales saw an 8% increase, driven by higher tax rates, platform expansions and the strengthening of automotive production. Lifestyle audio net sales rose 14%, driven by higher car audio and consumer audio sales. Professional solutions net sales dropped 3% and connected services net sales rose from $68 million to $174 million, primarily due to the acquisition of Symphony Teleca (STC).

Excluding special items, operating income rose 24% to $158 million and EBITDA income rose 20% to $197 million. Earnings per diluted share increased 13% to $1.48. GAAP operating income rose 14% to $131 million and EBITDA increased 23% to $188 million and earnings per diluted share increased 2% to $1.20.

Gross margin increased 80 basis points to 30% for the first quarter of fiscal year 2016. This was primarily due to the impact of an increase in sales volume as a result of a more efficient product cost base and an expanded service portfolio. Selling, general and administrative expenses remained consistent with the previous year's period at 20.3%.

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