While the growth fundamentals of our core business remain sound, the difficult portable navigation devices environment presents a challenge," Chief Executive Dinesh Paliwal said in a statement.

Paliwal added that the company has posted "higher than planned" R&D engineering and material costs. Harman did not provide a current earnings estimate using generally accepted accounting principles because restructuring costs have not yet been determined. Acquisition and restructuring costs relate to a proposed buyout of Harman by Kohlberg Kravis Roberts and Co. and GS Capital Partners, an affiliate of Goldman Sachs, for $120 per share in cash. The takeover soured in September, when the buyers expressed concern over the company's financial health.