Gentex has reported record financial results for the third quarter and first nine months of 2011, but also warned that flooding in Thailand could result in supply chain disruptions.
For the third quarter of 2011, the company’s all-time record net sales for any quarter increased by 30% to US$269.5m. The gross profit margin increased on a sequential basis from 35.2% in the second quarter of 2011 to 35.4% in the third quarter of 2011, primarily due to reduced supply chain-related costs, partially offset by annual customer price reductions.
Go deeper with GlobalData
For the first nine months of 2011, Gentex posted record net sales for any nine-month period – up by 28% on last year to US$763.4m. However, the gross profit margin decreased to 35.5% for the first nine months of 2011 compared with 36.4% for the first nine months of 2010, primarily due to the impact of annual automotive customer price reductions.
All-time record net income in the third quarter of 2011 increased 27% to US$43.4m. For the first nine months of 2011, record net income of US$124.2m increased 23% on last year.
“Gentex set a number of ‘records’ in the third quarter of 2011,” said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer. “Strong global demand for our auto-dimming mirror products and advanced electronic features in the third quarter of 2011 resulted in record auto-dimming mirror shipments of 5.6 million units, representing the highest quarterly mirror production in the Company’s history.”
Total auto-dimming mirror unit shipments increased by 31% in the third quarter of 2011 compared with the third quarter last year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAutomatic-dimming mirror unit shipments increased by 19% in North America in the third quarter of 2011, compared with the third quarter last year. North American light vehicle production increased by five percent in the third quarter of 2011 compared with the same prior-year quarter.
Automatic-dimming mirror unit shipments to offshore customers increased by 38% in the third quarter of 2011 compared with the same quarter last year.
Total auto-dimming mirror unit shipments increased by 29% in the first nine months of 2011 compared with the first nine months last year. Automatic-dimming mirror unit shipments increased by 27% in North America in the first nine months of 2011 compared with the first nine months of 2010. North American light vehicle production increased by seven percent in the first nine months of 2011 compared with the same prior-year period.
Automatic-dimming mirror unit shipments to offshore customers increased by 30% in the first nine months of 2011 compared with the same period last year.
Gentex Senior Vice President Enoch Jen provided certain guidance for 2011.
“Our estimate for net sales for the fourth quarter of 2011 is an increase of approximately 20-25 percent compared with the same quarter in 2010, based on IHS’s September 2011 forecast for light vehicle production levels,” said Jen.
He also indicated that flooding in Thailand as a result of heavy rain and monsoons since late July 2011 could result in additional supply chain disruptions.
“The company has been in regular contact with its suppliers and we continue to work with them to secure adequate quantities of parts to meet customer demand for our products,” said Jen. “Based on the September 2011 IHS forecast for light vehicle production levels and the company’s anticipated product mix, we currently believe that the company has secured an adequate supply of parts for the balance of calendar year 2011. However, the company continues to work to gain access to additional parts which may be at a higher cost due to anticipated changes in purchasing channels. The company currently estimates that the additional costs associated with these supply chain disruptions will negatively impact the Company’s gross margin in the fourth quarter of 2011 by approximately one-fourth to one-half percentage point (25 to 50 basis points).”
Based on the company’s expected net sales for the fourth quarter of 2011, Jen said that the Company currently expects that its gross profit margin for the fourth quarter of 2011 will slightly decline sequentially, primarily due to supply chain disruptions as a result of the flooding in Thailand.
“Additionally, we continue to estimate that shipments of our SmartBeam high beam headlamp assist product will increase by approximately 60-70% in calendar year 2011 compared with shipments of approximately 630,000 SmartBeam units in calendar year 2010,” said Jen. “We also continue to 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.”
