Harman International Industries Inc. Q4 2008 Earnings Call Transcript

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2008-08-14 18:00:19.0

Tags: Harman International Industries Inc.

Question-and-Answer Session

Operator

(Operator Instructions) That our first question will comes from the line of Chris Ceraso with Credit Suisse. Please go ahead.

Chris Ceraso

Thanks, good afternoon Dinesh.

Dinesh Paliwal

Hi, Chris, How are you?

Chris Ceraso

Well, thanks to you. Could I have a few items here first maybe you can recap some of the item from the quarter in particular what the total sales worth to Chrysler and what the profit profile is on that program now I think as of the last quarter you characterized it is somewhere round break even and then secondly, the sales level in the PND business for you right now and the profit profile there as well?

Dinesh Paliwal

Okay. Well I start with Chrysler Chris. The good thing is the Chrysler business program is now fully ramped up and it is stable and performing as expected. We are now on all Chrysler platforms in terms of profitability Chris it is the status what we shared with you last quarter the total business with Chrysler is just about breakeven, we had a half business which we like it’s profitable and another half since genuinely don’t like because it’s not making money. So, in total it is break even and there is no change there. Your second question is on PND, PND business has we have learnt quite a bit on PND as you know after burning our fingers, and we sold in fourth quarter 121,000 units relatively consistent with 116 we sold in Q4 of 2007 but significantly less than we originally made plans for which I’m very happy with it not sell many more it won’t have been profitable for the full year 2008 we sold 583,000 units as far as the profitability of PND is concern you know this is we don’t actually break out at that level of business that particular vertical but I think we have wall and away the way we are going to operate in a very selected niche PND and after market automotive sector high end where we will generate value at the bottom line otherwise I won’t keep this business as no secret goal. So, Chris I hope I have answered your two questions.

Chris Ceraso

Just on the Chrysler which if it is fully ramped up now you are running somewhere close to a 100 million a quarter in revenue or is it that finance?

 

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