Gentex second quarter net sales increased 2.40% to US$286.97m compared to $280.26m in the second quarter of 2012; while its half yearly sales fell 2.54% year over year to $556.47m from $570.96m. The company’s income from operations for the quarter reflected an increase of 24.5% to $71.6m from $57.51m, meanwhile its income from operations for the first half increased 10.11% to $135.4m from $123.01m.
The company’s income before provision for income taxes grew 27.11% to $77.13m from $60.68m. Its income before provision for income taxes for first half surged 10.36% to $142.88m compared to $129.47m. The net income of the company for second quarter increased 27.79% to $52.1m compared to $40.77m. Net income for first half increased 12% $97.53m compared to $87.11m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Gentex is very pleased to report that in second quarter of 2013, the company experienced increases in net sales, gross profit as well as net income versus the second quarter of 2012 and the first quarter of 2013, with continuing positive efficiencies within our operating expenses,” said Gentex chairman of the board and chief executive officer Fred Bauer.
Forecast
Based on the IHS July 2013 forecast for the third quarter of 2013, the company estimates that net sales in the third quarter of 2013 will be flat to up 5% compared with the third quarter of 2012.
The company also estimates gross profit margin for the third quarter of 2013 to be in the same range as the 2013 year to date gross profit margin, based on the July 2013 IHS production forecast.
ER&D expense in the third quarter of 2013 is estimated to decrease 5-10% compared with ER&D in the third quarter of 2012, primarily due to reduced costs associated with outside contract engineering. ER&D expense is expected to remain at approximately 7% of net sales, consistent with the company’s recent historical trend.
SG&A expense in the third quarter of 2013 is estimated to increase 5-10% compared with SG&A in the third quarter of 2012, primarily due to increased costs associated with professional fees and due diligence costs associated with the pending HomeLink acquisition, which was previously disclosed.
