Harman Adjusts Forecast Downward
Just a few months after its acquisition by two private-equity firms fell apart, Harman International has adjusted its forecast downward for fiscal 2008. According to the Wall Street Journal, Harman has adjusted its earnings downward to $3 to $3.10 per share, down from the previous forecast that the company would meet 2007’s number of $4.14 per share.
The drop in expectations was attributed by the company to “significant pricing pressure” in the in-car GPS device market. “While the growth fundamentals of our core business remain sound, the difficult (portable navigation device) environment presents a challenge,” the company’s CEO, Dinesh Paliwal, said in a company statement.
As a result of the announcement, Harman stock plunged, dropping 38 percent when trading closed at 4 p.m.