Gentex has posted first-quarter net income down 14% to US$89.5m, driven by lost sales due to the pandemic and the impact on gross margins.
The supplier reported Q1 net sales falling 3% to US$453.8m, compared to US$468.6m in the first quarter of 2019.
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The impact of the coronavirus pandemic created shutdowns in the automotive industry in various parts of Asia, Europe, and North America, which resulted in an estimated negative impact on net sales of around US$40m for the first quarter of 2020.
Global light vehicle production ended the first quarter of 2020 down 24%.
“For the first two months of the first quarter, top-line revenue growth was progressing in line with our forecasts, with modest negative impacts coming from reductions in China as a result of the pandemic,” said Gentex president and CEO, Steve Downing.
“By mid-March, the pandemic was negatively affecting European OEM’s more significantly and then the North American production environment was brought to a grinding halt. The vast majority of the US$40m shortfall in sales occurred during the last two weeks of March.”
