Gentex Corporation has reported record financial results for the second quarter and first six months of 2011.
For the second quarter, the company’s net sales increased by 21% to US$243m compared with US$202m in the second quarter of 2010. Net sales during the quarter were negatively impacted by approximately US$17m, due to reduced production at certain Japanese automakers as a result of the earthquake and tsunami in Japan.
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Gross profit margin decreased on a quarter-over-quarter basis from 36.7% in the second quarter of 2010 to 35.2% in the second quarter of 2011, primarily due to annual customer price reductions and costs associated with supply chain constraints on certain automotive-grade electronic components.
Gentex record net sales for the first six months of any year increased by 28% to US$494m compared with US$387m in the first six months of 2010. Gross profit margin decreased from 36.8% to 35.6% for the first six months of 2011, primarily due to the impact of annual automotive customer price reductions and costs associated with supply chain constraints on certain automotive-grade electronic components, partially offset by the company’s ability to leverage fixed overhead costs.
Net income rose 13% to US$38.5m for the second quarter of 2011, compared with US$34.1m in the same quarter last year, mainly due to increased net sales and gross profit.
For the first six months of 2011, the company posted net income of US$80.8m, an increase of 21% compared with US$66.5m for the first six months of 2010. The increase in net income was due to increased net sales and gross profit.
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By GlobalDataTotal auto-dimming mirror unit shipments grew 22% in the second quarter compared with last year. Automotive net sales increased 21% from US$196m to US$238m in the second quarter of 2011.
For the second quarter, automatic-dimming mirror unit shipments increased 21% in North America, shipments to offshore customers grew 22%. Light vehicle production in Europe rose 4%, followed by 1% increase in North American region, while the figures dipped 22% in Japan and Korea.
Total auto-dimming mirror unit shipments increased 28% in the first six months of 2011. Automotive net sales increased 28% from US$378m to US$485m in the first six months of 2011.
For the first six months, automatic-dimming mirror unit shipments increased 31% in North America, shipments to offshore customers grew 26%. Light vehicle production in Europe and North America increased 8%, while the figures dipped 19% in Japan and Korea.
Gentex’s senior vice president Enoch Jen, said: “Our estimate for net sales for the third quarter is an increase of approximately 25-30% compared with the same quarter in 2010, based on IHS’s July 2011 forecast for light vehicle production levels. The company currently expects that its gross profit margin for the third quarter will show a slight sequential increase compared with the gross margin percentage reported in this second quarter of 2011.”
“Additionally, we currently estimate that shipments of our SmartBeam high beam headlamp assist product will now increase by approximately 60-70% in calendar year 2011, compared with shipments of approximately 630,000 SmartBeam units in calendar year 2010. We also now estimate that shipments of rear camera display mirrors in calendar year 2011 will increase by approximately 40% compared with shipments of approximately 1.25m units in calendar year 2010.”
The company is a manufacturer of automatic-dimming rearview mirrors and camera-based active-safety systems for the automotive industry, commercial fire protection products and dimmable aircraft windows.
