800459--8/6/2010--HARMAN_INTERNATIONAL_INDUSTRIES_INC

related topics

{customer, product, revenue}

{condition, economic, financial}

{cost, operation, labor}

{operation, international, foreign}

{debt, indebtedness, cash}

{financial, litigation, operation}

{product, market, service}

{gas, price, oil}

{property, intellectual, protect}

{personnel, key, retain}

{product, liability, claim}

{tax, income, asset}

{competitive, industry, competition}

Decreased demand from our customers in the automotive industry may adversely affect our results of operations. A decrease in consumer discretionary spending would likely reduce our sales. The current economic environment may adversely affect the availability and cost of credit and consumer spending patterns. We may not realize sales represented by awarded business. We may not be successful in realizing and sustaining the cost savings anticipated in our STEP Change program. 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. Strategic decisions by our customers to move to dual sourcing arrangements could have an adverse effect on our operations. Failure to deliver products on time to our automotive customers could adversely affect our financial results. Bankruptcy of a significant customer could have a material adverse effect on our liquidity, financial condition and results of operations. The financial distress of our suppliers could harm our results of operations. We depend on our suppliers for key production materials and any disruption in the supply of such materials could interrupt product manufacturing and increase product costs. 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. Product recalls by OEMs and the consequent negative impact on car sales may decrease demand for our products which could adversely affect our results of operations. Covenants in our existing debt agreements restrict our operations. Currency fluctuations may reduce profits on our foreign sales or increase our costs, either of which could adversely affect our financial results. Our operations could be harmed by factors including political instability, natural disasters and changes in regulations that govern international transactions. 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. Obligations to correct product defects covered by our warranties could adversely affect our financial results. If we are unable to enforce or defend our ownership and use of our intellectual property rights, our business may decline. We are engaged in ongoing litigation and may be the subject of additional litigation that may result in payments to third parties, which could harm our business and financial results. We have deferred tax assets in our consolidated financial statements. Harman International Industries, Incorporated 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. Our success depends upon our ability to attract and retain key employees and the succession of senior management. Any acquisitions we make could disrupt our business and materially harm our financial condition, results of operations and cash flows.

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800459--8/6/2010--HARMAN_INTERNATIONAL_INDUSTRIES_INC_/DE/