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Who Will Run Harman Now? Who Else?
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Pertz had been hired to replace Bernard A. Girod, chief executive since 1998, who had said he would retire by year's end. Girod, vice chairman of the board of directors, will take over until a replacement is chosen.
A call to Pertz was not returned. Girod was on vacation and unreachable.
The sudden departure of a chief executive can lead some companies' stocks to plummet. But because Pertz was seen as an odd choice and because a replacement is expected to be found soon, most analysts remained upbeat.
"Our checks gave us reservations about the relevance of his experience, and we think this course correction will free Harman to appoint a more suitable candidate," wrote Ronald A. Tadross, an analyst with Banc of America Securities LLC.
Spencer Stuart, the search firm that found Pertz, will look for his replacement.
"This board continues to take a view that we should seek a qualified senior executive," Harman said. "At some point, Sidney Harman will retire."
The company said last week that fourth-quarter earnings fell 8 percent, to $64.8 million (95 cents a share) from $70.2 million ($1.01) in the corresponding period a year earlier. Revenue grew 6 percent, to $859 million. Profit for the fiscal year ended June 30 was $255.3 million ($3.75), up about 10 percent from $232.8 million ($3.31) the previous year. Annual revenue was up 7 percent, to $3.25 billion.
Shares closed at $81.05, down 4 percent.
Staff researcher Richard S. Drezen contributed to this report.
