Harman Shares Tumble on Reduced Forecast

[mahatmakanejeeves]

Source: Washington Post, many others

Harman International Industries today slashed its earnings forecast for the current fiscal year, sending the District-based consumer electronics manufacturer's stock tumbling to its worst single-day performance in 21 years. Shares of Harman dropped $25.97, or 37.6 percent, to close at $43 in New York Stock Exchange trading.

The company said that falling prices for portable navigation devices -- which it markets under the Harman Kardon brand -- were the primary reason for its revised outlook for fiscal 2008. (See the company's statement.) The company said it now expects to earn between $3.00 and $3.10 a share, excluding costs of a buyout of the company that ultimately failed. A previous forecast had said that fiscal 2008 earnings would surpass the per-share profit of $4.14 it reported in 2007.
....

Harman International was founded in 1952 by Sidney Harman, an authority on workplace productivity and a prominent Washington-area philanthropist. The company sells high-end audio equipment JBL, Harman Kardon, Mark Levinson and Infinity brands.

Last spring, Sidney Harman negotiated an innovative deal to sell his company for $8 billion to Goldman Sachs and Kohlberg Kravis Roberts. But the transaction collapsed in September as credit markets soured and several other high-profile deals stalled. A month later, the buyers and sellers negotiated a settlement, with KKR and Goldman agreeing to provide $400 million in financing to Harman.
-- Mike Shepard

Read more: http://blog.washingtonpost.com/washbizblog/2008/01/harman_shares_tumble_on_reduce.html

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I don't want it to be a habit that I post changes in all share prices. The "hook" to this story is that the head of the company, Sidney Harman, was Deputy Secretary of Commerce in the Carter administration. Also, he is married to Jane Harman.

If you bought shares yesterday, my condolences. That is one nasty chart.

The Wikipedia entry refers to him as "Dr. Harman." I've not heard that before.

http://en.wikipedia.org/wiki/Sidney_Harman

[fujiyama]

1. Their music equipment is good

I have a Harman Kardon receiver. I only found out recently that the founder is Jane Harman's wife. Found that interesting.

Can't stand her though.