Harman International Industries Inc. F1Q09 (Qtr End 9/30/08) Earnings Call Transcript

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2008-10-29 18:51:14.0

Tags: Credit Suisse First Boston, Operating Profit, Call Transcript, Earnings, Harman International Industries Inc., 401(k), Human Resources, Benefits, Retirement Plans, Seeking Alpha, Credit Suisse First Boston, Operating Profit, Call Transcript, Earnings, Harman International Industries Inc., 401(k), Human Resources, Benefits, Retirement Plans, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) We go first to the line of Chris Ceraso from Credit Suisse. Please go ahead.

Chris Ceraso - Credit Suisse

Thanks, good afternoon. As I work through the operating profit by segment, it looks like other expense was a lot lower than normal. Maybe this is a function of some of your cost saving efforts, but maybe you can give me some more detail on that and tell me where you expect that to run because isn't Q1 typically a higher quarter for that line item?

Herbert Parker

Chris, this is Herbert. You may not experience it in our SG&A revenue. We are running at a reasonably low level, we took some restructuring charges as you may be aware of from last year and we're seeing some of the early benefits of that already.

Chris Ceraso - Credit Suisse

Not SG&A per say, but if I look at the results on a segment basis and I add up the operating profit for automotive, consumer and pro, the delta it gets me to the total company operating profits about $7.5 million negative, which is a smaller charge than you typically have in that line?

Herbert Parker

Yes, we had also reduced costs in our corporate level and then the experience that we had in the 401K, our sharing plan.

Chris Ceraso - Credit Suisse

Do you expect it to stay at that level, or was there something in particular in the quarter that helped you there?

Herbert Parker

No. For fiscal 2009, it should stay at that level.

Chris Ceraso - Credit Suisse

Okay, a question?

Dinesh Paliwal

Chris, just to add, I can tell you one thing. Every cost line item is being very heavily looked at and managed extremely tightly. It has never been done in our company before like that. So I am very pleased with the discipline we have. At the same time, we are very generous in terms of our sales people, our service people out there. They should be out there, hold our customers hands and do what they have to do, so we are very mindful, so our costs should be well under control going forward.

Chris Ceraso - Credit Suisse

Okay. When does the E-Class turnover, do that start yet and can you give us an idea of roughly what the revenue amount is that you will lose on that program as part of it gets resourced?

 

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