Gentex Corporation has reported financial results for the three months ended September 30 that show healthy rises to net income, operating profit and revenue.

The gross profit margin in the third quarter of 2016 was 40.5%, compared with a gross profit margin of 39.0% in the third quarter of 2015. The quarter over quarter increase in the gross profit margin was driven by purchasing cost reductions and favourable product mix, which more than offset annual customer price reductions.

Income from operations for the third quarter of 2016 increased 15% to US$134.2m when compared to income from operations of $116.3m for the third quarter of 2015 as a result of the improved gross margin and consistent financial discipline in the company's operating expense growth.

Other income increased to $0.1m in the third quarter of 2016 compared to a loss of $0.2m in the third quarter of 2015, primarily due to an increase in realised gains on the sale of equity investments during the most recently completed quarter as compared to the same quarter last year.

Net income for the third quarter of 2016 increased 18% to $92.1m compared with net income of $78.3m in the third quarter of 2015.

Earnings per diluted share in the third quarter of 2016 increased 19% to $0.32, compared with earnings per diluted share of $0.27 in the third quarter of 2015. The increase was primarily driven by the increase in net income but was aided by a lower diluted share count on a quarter over quarter basis as a result of the company continuing to execute a consistent capital allocation strategy.

Automotive net sales in the third quarter of 2016 were $419.8m, an increase of 11% compared with automotive net sales of $379.9m in the third quarter of 2015. As noted previously, this increase was driven by a 9% increase in auto-dimming mirror unit shipments quarter over quarter in addition to favourable shifts in product mix.

Other net sales in the third quarter of 2016, which includes dimmable aircraft windows and fire protection products, were $9.8m, relatively consistent with other sales of $9.9m in the third quarter of 2015.

Share repurchases
During the third quarter of 2016, the company repurchased 1.8m shares of its common stock. As of September 30, 2016, the company has approximately 9.0m shares remaining available for repurchase, including the most recent authorisation of 7.5m shares by the company's board of directors. The company intends to continue to repurchase additional shares of its common stock in the future depending on macroeconomic issues, market trends and other factors that the company deems appropriate.

Debt repayment
During the third quarter of 2016, the company paid down $10m on its revolver loan in addition to its normally scheduled principal repayment on the company's term loan. The company may, at its discretion, pay additional principal toward its loans in the future, depending on macroeconomic trends, capital expenditure spending, cash and money market interest rates, the amount of available free cash and other factors that it deems appropriate for timing and amounts of incremental debt repayments.