Automatic dimming rear view mirror maker Gentex Corporation has reported net income up 2% to $US26.4m in the first quarter of 2006.
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Sales increased 9% from to a record $139m.
Earnings per share were 17 cents in the first quarter of 2006 compared with 17 cents in the first quarter of 2005.
“We are pleased to report solid financial results in what continues to be a very challenging automotive industry environment,” said Gentex chairman and CEO Fred Bauer.
The company said unit shipment growth was higher than forecast but the average selling price of auto-dimming mirrors was lower than expected due to product mix. A high-volume, advanced-feature mirror programme for a number of models at a European customer was delayed until the third quarter.
During the first quarter, gross margin declined on both a year-over-year and sequential basis, primarily due to customer price reductions and higher fixed overhead expense.
“We were not able to spread our fixed overhead costs over a higher revenue base,” Gentex said. “We continue to hope that we’ll be able to leverage our fixed manufacturing overhead costs beginning in the second half of this year. We currently expect unit shipment growth in the second quarter of approximately 10% compared to the second quarter of 2005, and a similar rate of growth for all of calendar year 2006.”
