Harman International Industries to Layoff 500

[10 Watt Street]

http://www.twice.com/articletype/fin...off-500/104879

Harman Reports Lower Sales, Profits; To Layoff 500


Stamford, Conn. — Harman International Industries reported lower sales and income during its fiscal first quarter, ended Dec. 31, 2012, and said it would issue layoffs of 500 employees.

Net sales for the second quarter were $1.056 billion, a decrease of 6 percent compared with the same period last year. In local currency, net sales decreased by 4 percent compared with the same period last year, primarily as a result of the economic slow-down in Europe, which significantly impacted automotive production.Net income in the quarter was $41 million, down from the prior year’s $60 million.Second-quarter operating income was $68 million, compared with $95 million in the same period last year. Excluding restructuring and non-recurring charges, operating profit in the second quarter was $57 million, compared with $96 million in the same period last year.

Harman said it would implement restructuring initiatives, which will reduce approximately 500 jobs in high-cost countries, resulting in annual operational savings of approximately $30 million to $35 million beginning in fiscal year 2014, the company said. Harman expects to record a restructuring charge of approximately $30 million to 35 million in the second half of fiscal year 2013.The company is also evaluating the sale or closure of a manufacturing site in Europe, which would reduce an additional 500 jobs.

Harman also announced plans to launch an infotainment services business. Harman Infotainment Services will leverage the installed base of more than 15 million Harman infotainment-equipped vehicles on the road today to create a fast-growing, recurring revenue stream with high margins, it said. OEMs and car owners are seeking to keep their vehicle infotainment systems current and connected. Harman Infotainment Services will offer 4G/LTE connected head-unit upgrades for vehicles currently on the road; Cloud-based services to the car (such as Aha by Harman); and customer relationship management (CRM) services for automakers using vehicle-specific aggregated data, the company said.Harman expects the service business to grow fivefold within the next five years from current levels of approximately $100 million.

[grumpy]

Infotainment? In-car? I am -so- not in their target demographic for that kind of high-margin "product."

[4313B]

Stamford, Conn. — Harman International Industries reported lower sales and income during its fiscal first quarter, ended Dec. 31, 2012, and said it would issue layoffs of 500 employees.

The company is also evaluating the sale or closure of a manufacturing site in Europe, which would reduce an additional 500 jobs.

Go pound sand losers...

Harman expects the service business to grow fivefold within the next five years from current levels of approximately $100 million.

Oh for crying out loud... die already...

[SoundOfSound]

Go pound sand losers...

HAHAHA!!! ...Too Funny!!!

[SoundOfSound]

God forbid they should get back to making kick ass home speakers. Has anybody tried any of their new offerings? ...or even care?

http://www.jbl.com/estore/jbl/us/sho...kers/cat140013

http://www.jbl.com/estore/jbl/us/sho...kers/cat140015

[Titanium Dome]

God forbid they should get back to making kick ass home speakers. Has anybody tried any of their new offerings? ...or even care?

http://www.jbl.com/estore/jbl/us/sho...kers/cat140013

http://www.jbl.com/estore/jbl/us/sho...kers/cat140015

Well, I know one guy who cares, as he designed some of the speakers on that page. In fact he was installing a pair of Studio 570s in his spare listening room last I knew. His main room has customized DD66000s and K2 S9900s. They're pretty kick-ass in my book.

Look, I don't have an interest in Harman as a company, but let's not throw the baby out with the bathwater. The baby in this case is the still working core of JBL veterans and the NRC of Canada imports that are doing some amazing work and creating some of the best speakers made--ever.

Yes, the suits running Harman are dangerously clueless about things like legacy and heritage. They're chasing gross margins and market share and squandering brand loyalty and integrity. But there are still people there who care and who will be doing great things up until the time the dumb asses who run the place need to preserve outrageously big salaries and bonuses by throwing away more people and more capacity to cut expenses as a way to show profits since they can't market their good products or grow the company to save their worthless souls.

[4313B]

Yes, the suits running Harman are dangerously clueless about things like legacy and heritage. They're chasing gross margins and market share and squandering brand loyalty and integrity. But there are still people there who care and who will be doing great things up until the time the dumb asses who run the place need to preserve outrageously big salaries and bonuses by throwing away more people and more capacity to cut expenses as a way to show profits since they can't market their good products or grow the company to save their worthless souls.

I have very little interest in using my hard earned cash to help fulfill their big salary and bonus requirements.

This latest round disgusts me no less than any of the previous rounds. I am not becoming numb to it all.

[JuniorJBL]

Yes, the suits running Harman are dangerously clueless about things like legacy and heritage. They're chasing gross margins and market share and squandering brand loyalty and integrity. But there are still people there who care and who will be doing great things up until the time the dumb asses who run the place need to preserve outrageously big salaries and bonuses by throwing away more people and more capacity to cut expenses as a way to show profits since they can't market their good products or grow the company to save their worthless souls.

Yeah it really does suck because GT and his team really do care to make a great product.

It's kinda like slappin your kid every time they do something good.

[mech986]

Very sad to see this.

[bigyank]

Yes, the suits running Harman are dangerously clueless about things like legacy and heritage. They're chasing gross margins and market share and squandering brand loyalty and integrity. But there are still people there who care and who will be doing great things up until the time the dumb asses who run the place need to preserve outrageously big salaries and bonuses by throwing away more people and more capacity to cut expenses as a way to show profits since they can't market their good products or grow the company to save their worthless souls.

Sounds just like the IT industry, one that I have had the privilege of watching die a slow agonizing death over the last 20 years.

[louped garouv]

....

Yes, the suits running Harman are dangerously clueless about things like legacy and heritage. They're chasing gross margins and market share and squandering brand loyalty and integrity. But there are still people there who care and who will be doing great things up until the time the dumb asses who run the place need to preserve outrageously big salaries and bonuses by throwing away more people and more capacity to cut expenses as a way to show profits since they can't market their good products or grow the company to save their worthless souls.

wouldn't it be neat-o if the MBA programs around the world figured out that sometimes
there's more to it than EBIT and ratios....

[4313B]

This one is pretty bad, some say worse than the last purge was. It looks like the factory in Europe is going to go too. Some departments are down to one person. Tribal knowledge is getting sniped as well, which doesn't necessarily bode well for legacy products, processes or procedures, almost as if someone wants to wipe the slate clean. This might be only the first round. And it always looks worse to the boots on the ground. To the guys at the top it's just business.

[Maron Horonzakz]

SOOOO !! Who will the new customers be...Surely not supporters of JBL..

[Sundown]

This is looking like the same beginning to a tragic ending that happened to Altec.

[Tim Rinkerman]

The main speakers in their executive boardroom in Stamford is a pair of 250 ti's..I'd tell you how I know, but I'd have to kill you...