Harman Kardon 2011 Annual Report Download - page 19

Forward-Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place
undue reliance on these statements. Forward-looking statements include information concerning possible or
assumed future results of operations, cash flows, capital expenditures, the outcome of pending legal proceedings
and claims, goals and objectives for future operations, including descriptions of our business strategies and
purchase commitments from customers. These statements are typically identified by words such as “believe,”
“anticipate,” “expect,” “plan,” “intend,” “estimate,” “should,” “will” and similar expressions. We base these
statements on particular assumptions that we have made in light of our industry experience, as well as our
perception of historical trends, current conditions, expected future developments and other factors that we believe
are appropriate under the circumstances. As you read and consider the information in this report, you should
understand that these statements are not guarantees of performance or results. They involve risks, uncertainties
and assumptions. In light of these risks and uncertainties, we cannot assure you that the results and events
contemplated by the forward-looking statements contained in, or incorporated by reference into, this report will
in fact transpire.
You should carefully consider the risks described below and the other information in this report because
they identify important factors that could cause actual results to differ materially from those predicted in any
such forward-looking statements. Our operating results may fluctuate significantly and may not meet our
expectations or those of securities analysts or investors. The price of our stock would likely decline if this occurs.
Factors that may cause fluctuations in our operating results include, but are not limited to, the following:
• our ability to maintain profitability in our automotive division if there are delays in our product
launches which may give rise to significant penalties and increased engineering expense;
• the loss of one or more significant customers, or the loss of a significant platform with an automotive
customer;
• warranty obligations for defects in our products;
• fluctuations in currency exchange rates, particularly with respect to the value of the U.S. Dollar and the
Euro;
• our ability to successfully implement our global footprint initiative, including achieving cost reductions
and other benefits in connection with the restructuring of our manufacturing, engineering, procurement
and administrative organizations;
• fluctuations in the price and supply of raw materials including, without limitation, petroleum, copper,
steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts
and components;
• the inability of our suppliers to deliver products at the scheduled rate and disruptions arising in
connection therewith;
• our ability to attract and retain qualified senior management and to prepare and implement an
appropriate succession plan for our critical organizational positions;
• our failure to implement and maintain a comprehensive disaster recovery program;
• our failure to comply with governmental rules and regulations, including the Foreign Corrupt Practices
Act and U.S. export control laws, and the cost of compliance with such laws;
• our ability to maintain a competitive technological advantage through innovation and leading product
designs;
• our failure to maintain the value of our brands and implementing a sufficient brand protection program;
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