Harman International Industries Inc. (NYSE:HAR) stock has plummeted 6.45% today. The company, makers of JBL audio equipment and Harman Kardon, missed quarterly estimates and lowered their yearly earnings forecast.
The company’s quarterly profits were $1.22 a share, with sales of $1.46 billion. Analysts estimated the company’s earnings per share would be $1.27 and sales would be $1.48 billion on average. After the announcement, the company reduced its annual earnings to $5.65 a share, down from January estimates of $5.85.
CEO, Dinesh Paliwal, stated that the company had solid growth during the quarter, but a strong dollar ultimately diminished sales and profits. Sales from a year earlier rose 4.3% with higher expectations missed due to currency rates.
The CEO explains that 20 percent of the company’s revenue comes from Brazil, China, India and Russia. A rising U.S. dollar caused the company’s prices to be 50 percent higher than their competitors in the regions. Even after offering discounts, the company was not able to offset the price difference that caused these countries to look for alternative manufacturers.
Dinesh states that the company wants to expand into countries that use the euro and that he expects currency issues to cause problems for the company for a few more quarters.