800459--8/29/2007--HARMAN_INTERNATIONAL_INDUSTRIES_INC

related topics

{debt, indebtedness, cash}

{cost, operation, labor}

{product, market, service}

{customer, product, revenue}

{operation, international, foreign}

{capital, credit, financial}

{property, intellectual, protect}

{condition, economic, financial}

{competitive, industry, competition}

{acquisition, growth, future}

Currency fluctuations may reduce profits on our foreign sales or increase our costs, either of which could adversely affect our financial results. Failure to maintain relationships with our largest customers and failure by our customers to continue to purchase expected quantities of our products due to changes in market conditions would have an adverse effect on our operations. Our products may not satisfy shifting consumer demand or compete successfully with competitors products. A decrease in discretionary spending would likely reduce our sales. Our business could be adversely affected if we are unable to obtain raw materials and components from our suppliers on favorable terms. Our business could be adversely affected by a strike or work stoppage at one of our manufacturing plants or at a facility of one of our significant customers or at a common carrier or major shipping location. We may lose market share if we are unable to compete successfully against our current and future competitors. If we do not continue to develop, introduce and achieve market acceptance of new and enhanced products, our sales may decrease. Our operations could be harmed by factors including political instability, natural disasters, fluctuations in currency exchange rates and changes in regulations that govern international transactions. If we are unable to enforce or defend our ownership and use of our intellectual property, our business may decline. Covenants in our existing debt agreements could restrict our operations. If we fail to comply with the covenants contained in our existing debt agreements, the related debt incurred under those agreements could be declared immediately due and payable, which could also trigger a default under other agreements. Harman International is a holding company with no operations of its own and therefore our cash flow and ability to service debt is dependent upon distributions from our subsidiaries. Risks Related to the Merger with Parent The merger may not be completed, which could adversely affect our business. Uncertainties associated with the merger may have a negative impact on employee and business relationships. As a result of the proposed acquisition, we will have substantially more debt. The downgrade in our credit ratings resulting from the announcement of the proposed merger could negatively affect our ability to access capital. In the future, we could have liquidity needs that could be difficult to satisfy under some circumstances.

Full 10-K form ▸

800459--8/29/2007--HARMAN_INTERNATIONAL_INDUSTRIES_INC_/DE/