Harman Unveils New JBL Speakers - Analyst Blog
11 Aprile 2011 - 11:45AM
Zacks
A developer of audio products and
electronic systems, Harman International Industries
Inc. (HAR) recently launched its new JBL Cinema 300 and
Cinema 500 speaker systems.
JBL Cinema 300 and 500 are 5.1 home
theatre systems ideal for watching movies at home. JBL Cinema 300
and Cinema 500 are available for $499 and $699, respectively.
The systems feature JBL Weave
aesthetic styling and two PolyPlas cones in the center channel. The
four identical satellites are voice matched with the center,
creating a theatre-like ambience in the room.
The 500 series features an
additional dual 3-inch (75mm) PolyPlas cone, which enhances the
movie watching experience.
The Cinema series possesses a
150-watt powered subwoofer along with a fast-moving 8-inch (200mm)
woofer that improves sound clarity by pushing sound waves down to
the floor, compared to traditional systems that allow it to hit the
walls.
Harman’s JBL brand has a strong
consumer base spanning consumer, automobile and professional
markets. Most recently, Harman launched JBL OnBeat docking stations
for Apple Inc.’s (AAPL) iPad and
iPhone.
We believe the launch of the new
JBL Cinema series will likely drive sales growth in the consumer
division going forward.
The company achieved strong sales
growth in the second quarter of 2011, with revenues of $956.1
million, up 3.0% year over year. The strong year-over-year growth
was driven by increased penetration in the Asian and Latin American
markets, further supported by the Selenium acquisition in Brazil,
which was completed in the latter half of 2010.
Sales from the Consumer division
grew 10.0% year over year (16.0% excluding foreign currency
effects) to $139.0 million in the second quarter. The Consumer
division grew 4x in the emerging markets of Brazil, India and China
compared with the prior-year quarter.
The Consumer division in China was
helped by a new partnership with China’s leading consumer
electronics distributor, Digital China during the quarter.
Harman also won several important
contracts from Toyota Motor Corp. (TM), Chrysler
and Fiat that increased its backlog to $13.0 billion at the end of
the second quarter.
Recommendation
We maintain a Neutral rating on a
long-term basis (6-12 months). We believe that strong growth from
emerging markets, particularly Brazil, India and China will drive
top-line growth going forward.
Harman continues to face tough
competition from Bose Corp., Boston Acoustics
Inc., Pioneer Corp., Yamaha Corp., Rockford Corp.
(ROFO), Panasonic Corp. (PC) and
Sony Corp. (SNE), which may hurt
its profitability going forward.
Currently, Harman has a Zacks #3
Rank, which implies a Hold rating on a short-term basis (1-3
months).
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