starbuxsux
12 years ago
Gentex Reports First Quarter Financial Results
8:04 AM ET 4/23/13 | Marketwire
Gentex Corporation (NASDAQ: GNTX), the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and camera-based lighting and driver-assist systems for the automotive industry, commercial fire protection products and dimmable aircraft windows, today reported financial results for the first quarter ended March 31, 2013.
For the first quarter of 2013, the Company's net sales decreased by seven percent to $269.5 million compared with $290.7 million in the first quarter of 2012.
The gross profit margin improved on a sequential basis to 34.7 percent in the first quarter of 2013 compared with 34.2 percent in the fourth quarter of 2012, primarily due to purchasing cost reductions and product mix, partially offset by annual customer price reductions. The gross profit margin was flat on a quarter-over-quarter basis at 34.7 percent in the first quarter of 2013 compared with the first quarter of 2012, with the impact of annual customer price reductions being offset by purchasing cost reductions and product mix.
Net income of $45.4 million for the first quarter of 2013 decreased by approximately two percent compared with net income of $46.3 million in the first quarter of 2012. Earnings per diluted share were flat at 32 cents in the first quarter of 2013 compared with the first quarter of 2012.
"We are happy to report that our gross profit margin improved sequentially in the first quarter of 2013, despite difficult production environments in the regions of Japan and Korea, and Europe, which account for the majority of the Company's unit shipments," said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer. "We also are pleased that we are continuing to demonstrate positive efficiencies within our operating expenses."
Technology/Product Update
In the first quarter of 2013, the Company launched a number of auto-dimming mirror applications with several automakers with various combinations of advanced technologies, including compass, microphones, telematics and wireless control systems, SmartBeam(R) and driver assist camera products.
The Company also received a number of customer performance and quality awards in the first quarter, including:
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-- Quality Excellence Award from a major European automotive customer
-- Quality & Delivery Award and Excellence In Partnership Award from
a major Asian automotive customer
-- High Beam System Technology Award from a major Asian automotive
customer, which was awarded for a Gentex SmartBeam(R) Dynamic
Forward Lighting application, adding to a history of technology awards
for SmartBeam High Beam Assist and SmartBeam Dynamic Forward Lighting
products with various customers.
-- Quality Excellence Award from a major European automotive customer -- Quality & Delivery Award and Excellence In Partnership Award from a major Asian automotive customer -- High Beam System Technology Award from a major Asian automotive customer, which was awarded for a Gentex SmartBeam(R) Dynamic Forward Lighting application, adding to a history of technology awards for SmartBeam High Beam Assist and SmartBeam Dynamic Forward Lighting products with various customers.
The Company continues in development and launch of new awarded business in all product technology areas, including interior auto-dimming mirrors with new frameless designs; lighting applications with new optoelectronics; new digital microphones; many different displays in new sizes with faster processing and increased graphics capabilities; new wireless control systems that send and receive signals from garage doors, gates, lights, locks, and security systems; SmartBeam with advanced detection for tunnels, curves, fog, and for use on all headlamp technologies, including halogen, Xenon, and LED; driver-assist systems with new object-detection capabilities; and exterior auto-dimming mirrors with new curved glass applications.
The Company continues to believe that SmartBeam and driver assist unit shipments will increase in calendar year 2013 by approximately 10-15 percent compared with calendar year 2012, based on the IHS April 2013 forecast for annual light vehicle production, which includes a three percent decline in European light vehicle production, as well as larger forecasted percentage decreases in the mid-size luxury class vehicle model segment, which currently is one of the Company's primary markets for these features. The Company is currently shipping SmartBeam and driver assist camera products for 84 vehicle models with ten automotive original equipment manufacturers (OEMs). The challenging European economic and market conditions continue to have a negative impact on product mix and option take rates.
The Company also continues to believe that Rear Camera Display (RCD) Mirror unit shipments in calendar year 2013 will decline by approximately 25-35 percent compared with calendar year 2012 (based on the IHS April 2013 forecast for annual light vehicle production), which includes estimated reduced RCD Mirror unit shipments to certain automotive customers who have previously announced they were moving the display for rear camera to the radio instead of the rearview mirror. After four delays, NHTSA has indicated that it now expects to finalize its rulemaking related to the Kids Transportation Safety Act in fiscal 2013. The Company is currently shipping RCD Mirrors for 58 vehicle models with ten automotive OEMS.
SmartBeam is the Company's high beam headlamp assist product that optimizes forward visibility by automating high beam usage, allowing drivers to better identify and react to potential hazards in the road ahead. Driver assist camera products utilize a multi-function camera combined with algorithmic decision making to perform certain tasks, such as automatic high beam assist, lane keeping and driver alert. The Company's Rear Camera Display Mirrors contain a liquid crystal display that works with an automaker-specified video camera mounted at the rear of the vehicle to provide a view directly behind the vehicle while backing up.
Unit Shipments and Net Sales Total auto-dimming mirror unit shipments increased by approximately one percent in the first quarter of 2013 compared with the first quarter last year. Automotive net sales declined by approximately eight percent to $263.0 million in the first quarter of 2013 compared with $285.7 million in the first quarter of 2012.
Auto-dimming mirror unit shipments increased by approximately eight percent in North America in the first quarter of 2013 compared with the same quarter of 2012, primarily as a result of increased mirror unit shipments to certain domestic and Asian transplant automakers. North American light vehicle production increased by approximately one percent in the first quarter of 2013 compared with the same quarter last year.
Auto-dimming mirror unit shipments to offshore customers decreased by approximately four percent in the first quarter of 2013 compared with the same quarter in 2012, primarily due to decreased mirror unit shipments to certain Asian and European automakers. Light vehicle production in Europe decreased by approximately eight percent in the first quarter of 2013, and decreased by approximately 13 percent in Japan and Korea in the first quarter of 2013, compared with the same quarter last year. The overall decline in light vehicle production in the regions of Japan and Korea, and Europe during the first quarter of 2013, compared in each case to the first quarter of 2012, also included higher percentage decreases in mid-size luxury class vehicle models, which currently are one of the primary markets for the Company's products.
Other net sales increased by approximately 30 percent to $6.5 million for the first quarter of 2013 compared with the same quarter last year, primarily due to an increase in dimmable aircraft window net sales. Fire protection net sales were flat quarter over quarter, and continue to be impacted by the relatively weak commercial construction market.
Share Repurchases The Company did not repurchase any shares in the first quarter of 2013, and four million shares remain authorized under the previously disclosed share repurchase plan ("the Plan"). Under the Plan, the Company may, from time to time, purchase additional shares of its common stock based on a number of factors, including market, economic and industry conditions; the market price of the Company's common stock; and other factors that the Company deems appropriate. The Plan does not have an expiration date, but is reviewed periodically by the Company's Board of Directors. Any repurchases will be funded with available cash.
Future Estimates The Company provided certain additional guidance for the second quarter of 2013.
For the second quarter of 2013, the Company estimates that net sales will be flat to down approximately five percent compared with the second quarter of 2012, based on IHS's April 2013 forecast for second quarter light vehicle production, which includes declines in the regions of Japan and Korea, and Europe, as well as the Company's 12-week customer order release schedule. Unstable macroeconomic factors continue to be a concern, particularly in Europe, as it remains the Company's largest shipping destination. Volatility in customer orders within the 12-week customer order release schedule, with some customers, including tier one mirror suppliers, revising orders, continues for the Company. Accurate forecasting in this environment remains very difficult.
Light vehicle production in North America in the second quarter of 2013 compared with the second quarter of 2012 is currently expected to increase by four percent, while production in the regions of Japan and Korea, and Europe are expected to decline by ten percent and three percent, respectively. The IHS forecast for second quarter 2013 production in the regions of Japan and Korea, and Europe again includes higher percentage decreases in mid-size luxury class vehicle models, which constitutes a primary market for the Company's products.
Based on the Company's expected net sales for the second quarter of 2013, the Company currently expects that its gross profit margin for the second quarter of 2013 will be in the same range as the gross profit margin of 34.7 percent reported in the first quarter of 2012 and 2013.
The Company currently expects Engineering, Research and Development expense to be down approximately 15 percent in the second quarter of 2013 compared with the second quarter last year, primarily due to reduced costs associated with outside contract engineering/development services. Additionally, Selling, General and Administrative expense is currently expected to be down approximately five to ten percent in the second quarter of 2013 compared with the second quarter of 2012, primarily due to reduced overseas office expenses. This forecast for Selling, General and Administrative expense in the second quarter of 2013 is based on stable foreign exchange rates.
The Company's forecasts for light vehicle production for each of the following periods in 2013 compared with the same periods in 2012 are based on IHS Automotive's April 2013 forecasts for light vehicle production in North America, Europe and Japan and Korea.
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Light Vehicle Production
(per IHS Automotive's April 2013 light vehicle production forecast)
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Region Second Quarter of 2013 Second Quarter of 2012 % Change
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North America 4.2 million vehicles 4.0 million vehicles +4%
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Europe 4.8 million vehicles 5.0 million vehicles -3%
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Japan and Korea 3.2 million vehicles 3.5 million vehicles -10%
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Light Vehicle Production
(per IHS Automotive's April 2013 light vehicle production forecast)
----------------------------------------------------------------------------
Region Calendar Year 2013 Calendar Year 2012 % Change
----------------------------------------------------------------------------
North America 16.1 million vehicles 15.4 million vehicles +4%
----------------------------------------------------------------------------
Europe 18.7 million vehicles 19.3 million vehicles -3%
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Japan and Korea 12.9 million vehicles 14.0 million vehicles -8%
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---------------------------------------------------------------------------- Light Vehicle Production (per IHS Automotive's April 2013 light vehicle production forecast) ---------------------------------------------------------------------------- Region Second Quarter of 2013 Second Quarter of 2012 % Change ---------------------------------------------------------------------------- North America 4.2 million vehicles 4.0 million vehicles +4% ---------------------------------------------------------------------------- Europe 4.8 million vehicles 5.0 million vehicles -3% ---------------------------------------------------------------------------- Japan and Korea 3.2 million vehicles 3.5 million vehicles -10% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Light Vehicle Production (per IHS Automotive's April 2013 light vehicle production forecast) ---------------------------------------------------------------------------- Region Calendar Year 2013 Calendar Year 2012 % Change ---------------------------------------------------------------------------- North America 16.1 million vehicles 15.4 million vehicles +4% ---------------------------------------------------------------------------- Europe 18.7 million vehicles 19.3 million vehicles -3% ---------------------------------------------------------------------------- Japan and Korea 12.9 million vehicles 14.0 million vehicles -8% ----------------------------------------------------------------------------
Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs and information currently available to us, and are also based on assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform to our current expectations, estimates and projections about the global automotive industry, the economy and the Company itself is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the affects can be difficult to predict. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "hopes", "likely," "plans," "projects," "optimistic," and "should," and variations of such words and similar expressions identify forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict with regard to timing, expense, likelihood and degree of occurrence. These risks include, without limitation, the pace of economic activity in Europe, Asia and in the United States, employment and other general economic conditions; worldwide automotive production; the maintenance of the Company's market share; the ability to control costs, including the ability to achieve purchasing and manufacturing cost reductions, control and leverage fixed overhead costs, maintain margins; the ability to control E,R&D and S,G&A expenses. Additionally, these risks include competitive pricing pressures; the mix of products purchased by customers; the market for and the success of certain of the Company's mirror products (e.g. Rear Camera Display, SmartBeam(R) and other camera-based driver-assist and lighting-assist products), including vehicle model penetration and option take rates; changes in customers' marketing strategies; consumer confidence and the impact on production volume levels; intellectual property litigation risk; the ability to continue to make and sell product innovations; customer inventory management; scheduled production shutdowns at our customers' production facilities; currency fluctuations; interest rates; equity prices; the financial strength/stability of the Company's customers (including their Tier 1 suppliers); potential impact of supply chain disruptions including but not limited to those caused by natural disasters and any other part shortages; potential restructuring/sale of OEM business segments or suppliers; potential customer (including their Tier 1 suppliers) bankruptcies; and other risks identified in the Company's other filings with the Securities and Exchange Commission. Therefore, actual results and outcomes may materially differ from what is expressed or forecasted. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
First Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at 10:30 a.m. EST today. To access that call, go to Gentex and select the "Audio Webcast" icon on the right side of the page. Other conference calls hosted by the Company will also be available at that site in the future.
About the Company
Founded in 1974, Gentex Corporation (NASDAQ: GNTX) is the leading supplier of automatic-dimming rearview mirrors and camera-based lighting- and driver-assist systems to the global automotive industry. The Company also provides commercial smoke alarms and signaling devices to the North American fire protection market, as well as dimmable aircraft windows for the commercial, business and general aviation markets. Based in Zeeland, Michigan, the international Company develops, manufactures and markets interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. More than half of the Company's interior mirrors are sold with advanced electronic features, and more than 98 percent of the Company's net sales are derived from the sale of auto-dimming mirrors to every major automaker in the world. Visit the Company's web site at www.gentex.com.
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GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
March 31,
2013 2012
------------- -------------
Net Sales $ 269,498,969 $ 290,706,762
Cost of Goods Sold 176,035,466 189,880,269
------------- -------------
Gross Profit 93,463,503 100,826,493
Engineering, Research & Development 18,683,576 23,215,134
Selling, General & Administrative 10,926,288 12,110,396
------------- -------------
Income from Operations 63,853,639 65,500,963
Other Income (1,900,273) (3,286,360)
------------- -------------
Income Before Income Taxes 65,753,912 68,787,323
Provision for Income Taxes 20,323,345 22,442,739
------------- -------------
Net Income $ 45,430,567 $ 46,344,584
============= =============
Earnings Per Share
Basic $ 0.32 $ 0.32
Diluted $ 0.32 $ 0.32
Weighted Average Shares:
Basic 142,534,655 143,502,772
Diluted 143,075,465 144,988,001
Cash Dividends Declared per Share $ 0.14 $ 0.13
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, Dec 31,
2013 2012
-------------- --------------
ASSETS
Cash and Short-Term Investments $ 518,504,952 $ 450,481,520
Other Current Assets 276,752,523 294,181,520
-------------- --------------
Total Current Assets 795,257,475 744,663,040
Plant and Equipment - Net 348,055,549 349,938,172
Long-Term Investments and Other Assets 186,819,252 171,090,123
-------------- --------------
Total Assets $1,330,132,276 $1,265,691,335
============== ==============
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $ 109,655,312 $ 87,957,442
Long-Term Debt 0 0
Deferred Income Taxes 58,029,136 56,773,337
Shareholders' Investment 1,162,447,828 1,120,960,556
-------------- --------------
Total Liabilities & Shareholders' Investment $1,330,132,276 $1,265,691,335
============== ==============
-------------------------------------------------------
AUTO-DIMMING MIRROR UNIT SHIPMENTS
(Thousands)
-------------------------------------------------------
First Quarter
Ended March 31,
-------------------------------------------------------
2013 2012 % Change
-------------------------------------------------------
Domestic Interior 2,032 1,921 6%
-------------------------------------------------------
Domestic Exterior 510 423 21%
-------------------------------------------------------
Total Domestic Units 2,542 2,344 8%
-------------------------------------------------------
-------------------------------------------------------
Foreign Interior 2,645 2,814 -6%
-------------------------------------------------------
Foreign Exterior 1,117 1,101 2%
-------------------------------------------------------
Total Foreign Units 3,762 3,915 -4%
-------------------------------------------------------
-------------------------------------------------------
Total Interior Mirrors 4,677 4,735 -1%
-------------------------------------------------------
Total Exterior Mirrors 1,627 1,524 7%
-------------------------------------------------------
Total Mirror Units 6,304 6,259 1%
-------------------------------------------------------
GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended March 31, 2013 2012 ------------- ------------- Net Sales $ 269,498,969 $ 290,706,762 Cost of Goods Sold 176,035,466 189,880,269 ------------- ------------- Gross Profit 93,463,503 100,826,493 Engineering, Research & Development 18,683,576 23,215,134 Selling, General & Administrative 10,926,288 12,110,396 ------------- ------------- Income from Operations 63,853,639 65,500,963 Other Income (1,900,273) (3,286,360) ------------- ------------- Income Before Income Taxes 65,753,912 68,787,323 Provision for Income Taxes 20,323,345 22,442,739 ------------- ------------- Net Income $ 45,430,567 $ 46,344,584 ============= ============= Earnings Per Share Basic $ 0.32 $ 0.32 Diluted $ 0.32 $ 0.32 Weighted Average Shares: Basic 142,534,655 143,502,772 Diluted 143,075,465 144,988,001 Cash Dividends Declared per Share $ 0.14 $ 0.13 CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) March 31, Dec 31, 2013 2012 -------------- -------------- ASSETS Cash and Short-Term Investments $ 518,504,952 $ 450,481,520 Other Current Assets 276,752,523 294,181,520 -------------- -------------- Total Current Assets 795,257,475 744,663,040 Plant and Equipment - Net 348,055,549 349,938,172 Long-Term Investments and Other Assets 186,819,252 171,090,123 -------------- -------------- Total Assets $1,330,132,276 $1,265,691,335 ============== ============== LIABILITIES AND SHAREHOLDERS' INVESTMENT Current Liabilities $ 109,655,312 $ 87,957,442 Long-Term Debt 0 0 Deferred Income Taxes 58,029,136 56,773,337 Shareholders' Investment 1,162,447,828 1,120,960,556 -------------- -------------- Total Liabilities & Shareholders' Investment $1,330,132,276 $1,265,691,335 ============== ============== ------------------------------------------------------- AUTO-DIMMING MIRROR UNIT SHIPMENTS (Thousands) ------------------------------------------------------- First Quarter Ended March 31, ------------------------------------------------------- 2013 2012 % Change ------------------------------------------------------- Domestic Interior 2,032 1,921 6% ------------------------------------------------------- Domestic Exterior 510 423 21% ------------------------------------------------------- Total Domestic Units 2,542 2,344 8% ------------------------------------------------------- ------------------------------------------------------- Foreign Interior 2,645 2,814 -6% ------------------------------------------------------- Foreign Exterior 1,117 1,101 2% ------------------------------------------------------- Total Foreign Units 3,762 3,915 -4% ------------------------------------------------------- ------------------------------------------------------- Total Interior Mirrors 4,677 4,735 -1% ------------------------------------------------------- Total Exterior Mirrors 1,627 1,524 7% ------------------------------------------------------- Total Mirror Units 6,304 6,259 1% -------------------------------------------------------
Note: Certain prior-period amounts have been reclassified to conform with the current presentation. Percent change and unit shipment amounts may not total due to rounding.
CONTACT:
Connie Hamblin
(616) 772-1800
SOURCE: Gentex Corporation
starbuxsux
12 years ago
Gentex Announces Eight Percent Increase in Quarterly Cash DividendRate for 2.7 Percent Yield
Feb 19, 2013 16:22:32 (ET)
ZEELAND, MI, Feb 19, 2013 (MARKETWIRE via COMTEX) -- Gentex Corporation , the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and camera-based lighting-assist and driver-assist systems for the automotive industry, commercial fire protection products and dimmable aircraft windows, today announced that its Board Of Directors approved an eight percent increase in its quarterly cash dividend rate from $0.13 (13 cents) to $0.14 (14 cents) per share. The Board subsequently declared a quarterly cash dividend of $0.14 per share that will be payable April 19, 2013, to shareholders of record of the common stock at the close of business on April 5, 2013. The dividend yield will be approximately 2.7 percent.
"Despite the continued volatile global macroeconomic environment, and particularly in Europe, our largest shipping destination, and in light of the continuing benefit of reduced double taxation of dividends, our Board believes that the dividend is important to investors," said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer. "We have a history of paying out a significant portion of our earnings in dividends -- approximately 50 percent -- and have cumulatively paid out approximately $525 million in cash dividends since more favorable tax treatment was implemented in 2003.
"We continue to believe that an investor-friendly dividend rate should be meaningful, sustainable and increase over time, at a rate generally in line with the Company's net income and operating cash flow," said Bauer.
The quarterly cash dividend program was implemented based on establishment of The Jobs and Growth Tax Relief Reconciliation Act of 2003, which significantly reduced the federal income tax rate for shareholders who receive corporate cash dividends, making the declaration of a dividend a more tax-efficient means of returning value to shareholders.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs and information currently available to us, and are also based on assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform to our current expectations, estimates and projections about the global automotive industry, the economy and the Company itself is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the affects can be difficult to predict. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "hopes," "likely," "plans," "projects," "optimistic," and "should," and variations of such words and similar expressions identify forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict with regard to timing, expense, likelihood and degree of occurrence. These risks include, without limitation, the pace of economic activity in Europe, Asia and in the United States, employment and other general economic conditions; worldwide automotive production; the maintenance of the Company's market share; the ability to control costs, including the ability to achieve purchasing and manufacturing cost reductions, control and leverage fixed overhead costs, maintain margins; the ability to control E,R&D and S,G&A expenses. Additionally, these risks include competitive pricing pressures; the mix of products purchased by customers; the market for and the success of certain of the Company's mirror products (e.g. Rear Camera Display, SmartBeam(R) and other camera-based driver-assist and lighting-assist products), including vehicle model penetration and option take rates; changes in customers' marketing strategies; consumer confidence and the impact on production volume levels; intellectual property litigation risk; the ability to continue to make and sell product innovations; customer inventory management; scheduled production shutdowns at our customers' production facilities; currency fluctuations; interest rates; equity prices; the financial strength/stability of the Company's customers (including their Tier 1 suppliers); potential impact of supply chain disruptions including but not limited to those caused by natural disasters and any other part shortages; potential restructuring/sale of OEM business segments or suppliers; potential customer (including their Tier 1 suppliers) bankruptcies; and other risks identified in the Company's other filings with the Securities and Exchange Commission. Therefore, actual results and outcomes may materially differ from what is expressed or forecasted. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
About the Company
Founded in 1974, Gentex Corporation (the nasdaq global select market:GNTX) is the leading supplier of automatic-dimming rearview mirrors and camera-based lighting-assist and driver-assist systems to the global automotive industry. The Company also provides commercial smoke alarms and signaling devices to the North American fire protection market, as well as dimmable aircraft windows for the commercial, business and general aviation markets. Based in Zeeland, Michigan, the international Company develops, manufactures and markets interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. More than half of the Company's interior mirrors are sold with advanced electronic features, and more than 98 percent of the Company's net sales are derived from the sale of auto-dimming mirrors to every major automaker in the world. Visit the Company's web site at www.gentex.com .
CONTACT:
Connie Hamblin
616/772-1800
WEBSITE:
www.gentex.com
SOURCE: Gentex Corporation
http://www.gentex.com/
starbuxsux
12 years ago
Gentex Reports Fourth Quarter Financial Results
8:00 AM ET 1/29/13 | Marketwire
Gentex Corporation (NASDAQ: GNTX), the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and camera-based lighting and driver-assist systems for the automotive industry, commercial fire protection products and dimmable aircraft windows, today reported financial results for the fourth quarter and calendar year ended December 31, 2012.
For the fourth quarter of 2012, the Company's net sales were flat at $260.3 million compared with the fourth quarter of 2011. For calendar year 2012, the Company's net sales increased by seven percent to $1.1 billion compared with $1.0 billion for calendar year 2011.
The gross profit margin increased on a sequential basis to 34.2 percent in the fourth quarter of 2012 compared with 33.6 percent in the third quarter of 2012, primarily due to production efficiencies, partially offset by the Company's inability to leverage fixed overhead expenses on lower sequential quarterly net sales. The gross margin decreased on a quarter-over-quarter basis from 34.7 percent in the fourth quarter of 2011 to 34.2 percent in the fourth quarter of 2012, primarily due to the impact of annual customer price reductions and product mix, partially offset by purchasing cost reductions.
The gross margin declined from 35.3 percent in calendar year 2011 to 33.9 percent in calendar year 2012, primarily due to annual customer price reductions and product mix, partially offset by purchasing cost reductions.
Net income of $39.6 million for the fourth quarter of 2012 decreased by approximately two percent compared with net income of $40.5 million in the fourth quarter of 2011. Net income in calendar year 2012 increased by two percent to $168.6 million, compared with $164.7 million in calendar year 2011. Net income for both the fourth quarter and calendar year 2012 includes a $5 million (pre-tax) litigation settlement with American Vehicular Sciences (AVS), which is discussed below.
Earnings per diluted share were flat at 28 cents in the fourth quarter of 2012 compared with the fourth quarter of 2011. Earnings per diluted share were $1.17 for calendar year 2012 compared with $1.14 in calendar year 2011. Earnings per share for the quarter and calendar year ended December 31, 2012, include the litigation settlement with AVS.
"We are quite pleased to report that our gross profit margin improved sequentially in the fourth quarter of 2012, despite a sequential decrease in net sales," said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer. "We are also demonstrating continued positive efficiencies we are experiencing within our operating expenses. Our entire management team has been actively working on cost-reduction initiatives and we are pleased with the results to date."
AVS Litigation Settlement
As previously disclosed, on June 25, 2012, American Vehicular Sciences LLC ("AVS") filed four patent infringement complaints in the United States District Court in the Eastern District of Texas, which named the Company and one of two of its customers as co-defendants. In two of the complaints (#6:12-cv-00413 and #6:12-cv-00406), AVS alleged that the Company's SmartBeam product infringed one patent owned by AVS. In the other two complaints (#6:12-cv-00410 and #6:12-cv-00415), AVS alleged that the Company's monitoring system products infringe two other patents owned by AVS. The Company was served with the four complaints on July 27, 2012. On October 5, 2012, the Company submitted its answers to all four complaints. On December 28, 2012, in the ordinary course of business, the Company entered into a settlement/license agreement ("agreement") with AVS, settling all pending litigation. The cost associated with the agreement was accrued by the Company and reflected in its financial results as of December 31, 2012. As a result of the agreement, the United States District Court in the Eastern District of Texas has ordered that the Company is dismissed with prejudice in the complaints filed by AVS.
Technology/Product Update
In the fourth quarter of 2012, the Company successfully began shipping a number of auto-dimming mirror production applications with several automakers with advanced technologies including SmartBeam(R), driver assist, Rear Camera Display (RCD), telematics, wireless control systems, compass, and various combinations of these features.
Unit shipments of SmartBeam and driver assist camera products increased by approximately 12 percent in calendar year 2012 compared with calendar year 2011, in the face of challenging European market conditions which had a negative impact on product mix and option take rates. In calendar year 2013, SmartBeam and driver assist unit shipments are estimated to increase by approximately 10-15 percent compared with calendar year 2012, based on the IHS January 2013 forecast for light vehicle production, which includes a three percent decline in European light vehicle production with larger forecasted percentage decreases in the mid-size luxury class vehicle model market, which currently is one of the Company's primary markets for these features.
RCD Mirror unit shipments decreased by approximately eight percent in calendar year 2012 compared with calendar year 2011. In calendar year 2013, RCD Mirror unit shipments are estimated to decrease by approximately 25-35 percent compared with calendar year 2012, which includes estimated reduced RCD Mirror unit shipments to automotive customers who have previously notified the Company of their plans to have the display for the rear camera in the radio instead of the rearview mirror. While the Company continues production launches of RCD Mirrors on new vehicle models in 2013, volatility in customer orders continues for this feature in the face of delayed rulemaking under the Kids Transportation Safety Act (KTSA), which did not meet the scheduled December 31, 2012, deadline for implementation, making this the fourth such delay for KTSA rulemaking.
All other mirror products and technologies continue to result in new awarded business. In development and launch now are: interior auto-dimming mirrors with new frameless designs; lighting applications with new optoelectronics; new digital microphones; many different displays in new sizes with faster processing and increased graphics capabilities; new wireless control systems that send and receive signals from garage doors, gates, lights, locks, and security systems; SmartBeam with advanced detection for tunnels, curves, fog, and for use on all headlamp technologies, including halogen, Xenon, and LED; driver-assist systems with new object-detection capabilities; and exterior auto-dimming mirrors with new curved glass applications.
SmartBeam is the Company's high beam headlamp assist product that optimizes forward visibility by automating high beam usage, which allows drivers to better identify and react to potential hazards in the road ahead. Driver assist camera products utilize a multi-function camera combined with algorithmic decision making to perform certain tasks, such as automatic high beam assist, lane keeping and driver alert. RCD Mirrors contains a liquid crystal display (LCD) that works with an automaker-specified video camera mounted at the rear of the vehicle to provide a view directly behind the vehicle while backing up.
Unit Shipments and Net Sales
Total auto-dimming mirror unit shipments increased by approximately five percent in the fourth quarter of 2012 compared with the fourth quarter last year. Automotive net sales declined slightly to $254.6 million in the fourth quarter of 2012 compared with $254.7 million in the fourth quarter of 2011.
Auto-dimming mirror unit shipments increased by approximately 17 percent in North America in the fourth quarter of 2012 compared with the fourth quarter of 2011, primarily as a result of increased mirror unit shipments to certain domestic and Japanese transplant automakers. North American light vehicle production increased by approximately ten percent in the fourth quarter of 2012 compared with the same prior-year quarter.
Auto-dimming mirror unit shipments to offshore automakers decreased by approximately two percent in the fourth quarter of 2012 compared with the same quarter last year, primarily due to decreased mirror unit shipments to certain European and Japanese automakers. Light vehicle production in Europe decreased by approximately seven percent in the fourth quarter of 2012, and decreased by approximately nine percent in Japan and Korea in the fourth quarter of 2012, each compared with the same quarter in the prior year.
Total auto-dimming mirror unit shipments increased by 11 percent in calendar year 2012 compared with calendar year 2011. Automotive net sales increased by 7 percent to $1.1 billion in calendar year 2012 compared with $1.0 billion in calendar year 2011.
Auto-dimming mirror unit shipments increased by approximately 22 percent in North America in calendar year 2012 compared with calendar year 2011, primarily as a result of increased mirror unit shipments to certain Japanese transplant and domestic automakers. North American light vehicle production increased by approximately 17 percent in calendar year 2012 compared with calendar year 2011.
Auto-dimming mirror unit shipments to offshore customers increased by approximately five percent in calendar year 2012 compared with calendar year 2011, primarily due to increased mirror unit shipments to certain European and Japanese automakers. Light vehicle production in Europe decreased by approximately five percent in calendar year 2012, and increased by approximately 12 percent in Japan and Korea in calendar year 2012, each compared with calendar year 2011.
Other net sales increased by approximately three percent to $5.8 million for the fourth quarter of 2012 compared with the same quarter last year, primarily due to increased dimmable aircraft window net sales, partially offset by decreased fire protection net sales. Other net sales increased by 10 percent to $22.6 million for calendar year 2012 compared with calendar year 2011, primarily due to increased dimmable aircraft window net sales, partially offset by decreased fire protection net sales. Fire protection net sales continue to be impacted by the relatively weak commercial construction market.
Share Repurchases
The Company did not repurchase any shares in the fourth quarter of 2012, and four million shares remain authorized under the previously disclosed share repurchase plan ("the Plan"). Under the Plan, the Company may, from time to time, purchase additional shares of its common stock based on a number of factors, including market, economic and industry conditions; the market price of the Company's common stock, and other factors that the Company deems appropriate. The Plan does not have an expiration date, but is reviewed periodically by the Company's Board of Directors. Any repurchases will be funded with available cash.
"With the uncertainty created by the fiscal cliff negotiations coupled with the European sovereign debt crisis, the Company continues to be cautious," said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer.
Future Estimates
The Company provided certain additional guidance for the first quarter of 2013.
For the first quarter of 2013, the Company estimates that net sales will decline by approximately five to ten percent compared with the first quarter of 2012, based on IHS's January 2013 forecast for light vehicle production levels, as well as the Company's 12-week customer order release schedule.
The Company said that unstable macroeconomic factors continue to be a concern, and especially the sovereign debt crisis in Europe, as it is the Company's largest shipping destination. The Company also continues to experience significant volatility in customer orders within the 12-week customer release schedule, and indicated that accurate forecasting remains very difficult in this environment.
Light vehicle production in the first quarter of 2013 is expected to decline by 13 percent in Japan and Korea, by ten percent in Europe and by two percent in North America, according to the IHS January 2013 forecast for light vehicle production. Additionally, while overall European light vehicle production is expected to decline by ten percent in the first quarter of 2013, the IHS forecast also includes higher percentage decreases in mid-size luxury class vehicle models, which currently are one of the primary markets for the Company's products.
Based on the Company's expected net sales for the first quarter of 2013, the Company currently expects that its gross profit margin for the first quarter of 2013 will be slightly down sequentially compared with the gross profit margin of 34.2 percent reported in the fourth quarter of 2012, primarily due to annual customer price reductions.
The Company currently expects Engineering, Research and Development expense to be down approximately ten percent in the first quarter of 2013 compared with the first quarter last year, primarily due to reduced costs associated with outside contract engineering/development services. Additionally, Selling, General and Administrative expense is currently expected to be approximately flat in the first quarter of 2013 compared with the first quarter of 2012, which is based on stable foreign exchange rates.
The Company's current forecasts for light vehicle production for each of the following periods in 2013 compared with the same periods in 2012 are based on IHS Automotive's January 2013 forecast for light vehicle production in North America, Europe and Japan and Korea. As indicated below, light vehicle production in Japan and Korea, Europe and North America is expected to decline in the first quarter of 2013 compared with the first quarter of 2012. Production in the North American region is expected to increase in calendar year 2013 compared with calendar year 2012, but Europe and Japan and Korea are expected to decrease in that same year-over-year period.
View data
---------------------------------------------------------------------------- Light Vehicle Production (per IHS Automotive's January 2013 light vehicle production forecast) ---------------------------------------------------------------------------- Region First Quarter of 2013 First Quarter of 2012 % Change ---------------------------------------------------------------------------- North America 3.9 million vehicles 4.0 million vehicles -2% ---------------------------------------------------------------------------- Europe 4.7 million vehicles 5.2 million vehicles -10% ---------------------------------------------------------------------------- Japan and Korea 3.3 million vehicles 3.8 million vehicles -13% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Light Vehicle Production (per IHS Automotive's January 2013 light vehicle production forecast) ---------------------------------------------------------------------------- Region Calendar Year 2013 Calendar Year 2012 % Change ---------------------------------------------------------------------------- North America 15.9 million vehicles 15.4 million vehicles +3% ---------------------------------------------------------------------------- Europe 18.6 million vehicles 19.2 million vehicles -3% ---------------------------------------------------------------------------- Japan and Korea 12.7 million vehicles 14.0 million vehicles -9% ----------------------------------------------------------------------------
Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs and information currently available to us, and are also based on assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform to our current expectations, estimates and projections about the global automotive industry, the economy and the Company itself is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the affects can be difficult to predict. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "hopes", "likely," "plans," "projects," "optimistic," and "should," and variations of such words and similar expressions identify forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict with regard to timing, expense, likelihood and degree of occurrence. These risks include, without limitation, the pace of economic activity in Europe, Asia and in the United States, employment and other general economic conditions; worldwide automotive production; the maintenance of the Company's market share; the ability to control costs, including the ability to achieve purchasing and manufacturing cost reductions, control and leverage fixed overhead costs, maintain margins; the ability to control E,R&D and S,G&A expenses. Additionally, these risks include competitive pricing pressures; the mix of products purchased by customers; the market for and the success of certain of the Company's mirror products (e.g. Rear Camera Display, SmartBeam(R) and other camera-based driver-assist and lighting-assist products), including vehicle model penetration and option take rates; changes in customers' marketing strategies; consumer confidence and the impact on production volume levels; intellectual property litigation risk; the ability to continue to make and sell product innovations; customer inventory management; scheduled production shutdowns at our customers' production facilities; currency fluctuations; interest rates; equity prices; the financial strength/stability of the Company's customers (including their Tier 1 suppliers); potential impact of supply chain disruptions including but not limited to those caused by natural disasters and any other part shortages; potential restructuring/sale of OEM business segments or suppliers; potential customer (including their Tier 1 suppliers) bankruptcies; and other risks identified in the Company's other filings with the Securities and Exchange Commission. Therefore, actual results and outcomes may materially differ from what is expressed or forecasted. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
Fourth Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at 10:00 a.m. EST today. To access that call, go to www.gentex.com and select the "Audio Webcast" icon on the right side of the page. Other conference calls hosted by the Company will also be available at that site in the future.
About the Company
Founded in 1974, Gentex Corporation (NASDAQ: GNTX) is the leading supplier of automatic-dimming rearview mirrors and camera-based lighting- and driver-assist systems to the global automotive industry. The Company also provides commercial smoke alarms and signaling devices to the North American fire protection market, as well as dimmable aircraft windows for the commercial, business and general aviation markets. Based in Zeeland, Michigan, the international Company develops, manufactures and markets interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. More than half of the Company's interior mirrors are sold with advanced electronic features, and more than 98 percent of the Company's net sales are derived from the sale of auto-dimming mirrors to every major automaker in the world. Visit the Company's web site at www.gentex.com.
View data
GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 ------------ ------------ -------------- -------------- Net Sales $260,349,122 $260,346,644 $1,099,559,521 $1,023,762,049 Cost of Goods Sold 171,230,430 169,992,934 726,740,962 662,181,714 ------------ ------------ -------------- -------------- Gross Profit 89,118,692 90,353,710 372,818,559 361,580,335 Engineering, Research & Development 18,561,953 21,805,103 85,003,602 81,634,158 Selling, General & Administrative 11,738,057 12,765,228 48,359,725 48,578,252 Litgation Settlement 5,000,000 0 5,000,000 0 ------------ ------------ -------------- -------------- Income from Operations 53,818,682 55,783,379 234,455,232 231,367,925 Other Income (4,653,819) (2,946,486) (15,170,368) (13,063,886) ------------ ------------ -------------- -------------- Income Before Income Taxes 58,472,501 58,729,865 249,625,600 244,431,811 Provision for Income Taxes 18,873,867 18,263,752 81,038,760 79,763,583 ------------ ------------ -------------- -------------- Net Income $ 39,598,634 $ 40,466,113 $ 168,586,840 $ 164,668,228 ============ ============ ============== ============== Earnings Per Share Basic $ 0.28 $ 0.28 $ 1.18 $ 1.16 Diluted $ 0.28 $ 0.28 $ 1.17 $ 1.14 Weighted Average Shares: Basic 142,151,791 143,132,866 143,097,530 142,492,699 Diluted 142,588,023 144,806,230 143,968,031 144,276,808 Cash Dividends Declared per Share $ 0.13 $ 0.12 $ 0.52 $ 0.48 CONDENSED CONSOLIDATED BALANCE SHEETS Dec 31, Dec 31, 2012 2011 --------------- --------------- ASSETS Cash and Short-Term Investments $ 450,481,520 $ 418,795,011 Other Current Assets 294,181,520 333,497,973 --------------- --------------- Total Current Assets 744,663,040 752,292,984 Plant and Equipment - Net 349,938,172 282,541,588 Long-Term Investments and Other Assets 171,090,123 141,192,430 --------------- --------------- Total Assets $ 1,265,691,335 $ 1,176,027,002 =============== =============== LIABILITIES AND SHAREHOLDERS' INVESTMENT Current Liabilities $ 87,957,442 $ 100,694,500 Long-Term Debt 0 0 Deferred Income Taxes 56,773,337 48,213,981 Shareholders' Investment 1,120,960,556 1,027,118,521 --------------- --------------- Total Liabilities & Shareholders' Investment $ 1,265,691,335 $ 1,176,027,002 =============== =============== ---------------------------------------------------------------------------- AUTO-DIMMING MIRROR UNIT SHIPMENTS (Thousands) ---------------------------------------------------------------------------- Fourth Quarter Calendar Year Ended December Ended December 31, 31, ---------------------------------------------------------------------------- 2012 2011 % Change 2012 2011 % Change ---------------------------------------------------------------------------- North American Interior 1,928 1,651 17% 7,726 6,232 24% ---------------------------------------------------------------------------- North American Exterior 444 370 20% 1,736 1,514 15% ---------------------------------------------------------------------------- Total North American Units 2,372 2,021 17% 9,462 7,746 22% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Offshore Interior 2,414 2,484 -3% 10,355 9,957 4% ---------------------------------------------------------------------------- Offshore Exterior 919 904 2% 4,015 3,774 6% ---------------------------------------------------------------------------- Total Offshore Units 3,333 3,388 -2% 14,370 13,731 5% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total Interior Mirrors 4,342 4,135 5% 18,081 16,189 12% ---------------------------------------------------------------------------- Total Exterior Mirrors 1,363 1,274 7% 5,751 5,288 9% ---------------------------------------------------------------------------- Total Mirror Units 5,705 5,409 5% 23,832 21,477 11% ----------------------------------------------------------------------------
Note: Certain prior-period amounts have been reclassified to conform with the current presentation. Percent change and unit shipment amounts may not total due to rounding.
CONTACT:
Connie Hamblin
(616) 772-1800
SOURCE: Gentex Corporation
starbuxsux
13 years ago
Gentex Reports All-Time Quarterly Record Net Sales and Net Income
8:02 AM ET 4/19/12 | Marketwire
Gentex Corporation (NASDAQ: GNTX), the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and camera-based lighting and driver-assist systems for the automotive industry, commercial fire protection products and dimmable aircraft windows, today reported all-time record financial results for any quarter in the first quarter ended March 31, 2012.
For the first quarter of 2012, the Company's all-time record net sales for any quarter increased by 16 percent to $290.7 million compared with $250.9 million in the first quarter of 2011.
The gross profit margin was flat on a sequential basis at 34.7 percent in the first quarter of 2012 compared with the fourth quarter of 2011, primarily due to the impact of annual customer price reductions, which were offset by purchasing and manufacturing cost reductions. The gross profit margin decreased on a quarter-over-quarter basis from 36.0 percent in the first quarter of 2011 to 34.7 percent in the first quarter of 2012, primarily due to annual customer price reductions, partially offset by purchasing and manufacturing cost reductions.
All-time record net income for any quarter increased nine percent to $46.3 million in the first quarter of 2012, compared with net income of $42.3 million in the first quarter of 2011, primarily due to increased net sales and gross profit.
Earnings per diluted share were 32 cents in the first quarter of 2012 compared with 29 cents per share in the first quarter of 2011.
"We are pleased to report another all-time record quarter in net sales and net income for Gentex Corporation, despite a volatile automotive environment," said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer. "The increased net sales and auto-dimming mirror unit shipments in the first quarter of 2012 were primarily a result of increased demand from our North American and European customers."
Rear Camera Display Update
Gentex Vice President of Finance and Chief Financial Officer Steve Dykman said that on February 28, 2012, U.S. Secretary of Transportation Ray LaHood provided an update to Congressman Fred Upton and other congressional leaders, announcing another delay in the final rule related to the Cameron Gulbransen Kids Transportation Safety Act (KTSA). Secretary LaHood indicated that additional time is needed to complete the final rule and that he anticipates that the Department of Transportation can now issue the final standards by December 31, 2012.
As previously announced, the Company's solution to meet the pending KTSA requirement is its Rear Camera Display (RCD) Mirrors, which display high-resolution, color images of the area directly behind the vehicle via an automaker-specified camera.
Unit Shipments and Net Sales
Total auto-dimming mirror unit shipments increased by 16 percent in the first quarter of 2012 compared with the first quarter last year. Automotive net sales also increased by 16 percent from $246.3 million in the first quarter of 2011 to $285.7 million in the first quarter of 2012.
Automatic-dimming mirror unit shipments increased by 18 percent in North America in the first quarter of 2012, compared with the first quarter last year, primarily as a result of increased mirror unit shipments to the Detroit Three as well as Japanese and European transplant automakers. North American light vehicle production increased by 16 percent in the first quarter of 2012 compared with the same prior-year quarter.
Automatic-dimming mirror unit shipments to offshore customers increased by 14 percent in the first quarter of 2012 compared with the same quarter last year. The increase in unit shipments was primarily due to increased mirror unit shipments to certain European automakers. Light vehicle production in Europe decreased by four percent in the first quarter of 2012, and increased by 33 percent in Japan and Korea in the first quarter of 2012, in each case compared with the same quarter last year.
Other net sales increased by eight percent to $5.0 million for the first quarter of 2012 compared with the same quarter last year, primarily due to a 48 percent increase in dimmable aircraft window net sales.
The increase in dimmable aircraft window net sales for the first quarter of 2012 was primarily due to increased shipments of dimmable windows for the Boeing 787 Dreamliner series of aircraft. Fire Protection net sales were flat quarter over quarter and continue to be impacted by the relatively weak commercial construction market.
Future Estimates
Gentex Chief Financial Officer Steve Dykman provided certain guidance for 2012.
"Our estimate for net sales for the second quarter of 2012 is an increase of approximately 15 percent compared with the same quarter in 2011, based on IHS's March 2012 forecast for light vehicle production levels," said Dykman.
Based on the Company's expected net sales for the second quarter of 2012, Dykman said that the Company currently expects that its gross profit margin for the second quarter of 2012 will be in approximately the same range as the gross profit reported in the first quarter of 2012.
In addition, the Company continues to expect that unit shipments of its SmartBeam(R) high beam headlamp assist product will increase by approximately 40-45 percent in calendar year 2012, compared with unit shipments of 1.0 million units in calendar year 2011. The Company also currently expects that unit shipments of its Rear Camera Display (RCD) Mirrors will be approximately flat for calendar year 2012 compared with calendar year 2011. The Company shipped approximately 1.7 million RCD Mirrors in calendar year 2011. Both SmartBeam and RCD Mirror unit forecasts are based on the IHS March 2012 forecast for light vehicle production.
The Company's current forecasts for light vehicle production for each of the following periods in 2012 compared with the same periods in 2011 are based on IHS Automotive's March 2012 forecast for light vehicle production in North America, Europe and Japan and Korea:
View data
Second quarter of 2012 Vs. Second Quarter Light Vehicle Production (per IHS) % change of 2011 -------- -------------------- North America: 3.7 million vehicle units +19% 3.1 million Europe: 4.8 million vehicle units -10% 5.3 million Japan and Korea: 3.4 million vehicle units +31% 2.6 million Calendar Year 2012 Vs. Calendar Year Light Vehicle Production % change 2011 -------- -------------------- North America: 14.6 million vehicles +11% 13.1 million Europe: 18.8 million vehicles -7% 20.2 million Japan and Korea: 13.8 million vehicles +10% 12.5 million
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates and projections about the global automotive industry, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecast," "hopes", "likely," "plans," "projects," "optimistic," and "should," and variations of such words and similar expressions identify forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict with regard to timing, expense, likelihood and degree of occurrence. These risks include, without limitation, the pace of economic activity in the United States and in international markets, employment and general economic conditions; worldwide automotive production; the maintenance of the Company's market share; the ability to control costs, including the ability to achieve purchasing cost reductions, control and leverage fixed overhead costs, and maintain margins; the ability to control E,R&D and S,G&A expenses; customer inventory management; competitive pricing pressures; currency fluctuations; interest rates; equity prices; the financial strength/stability of the Company's customers (including their Tier 1 suppliers); potential impact of supply chain disruptions including but not limited to those caused by natural disasters and any other part shortages; potential sale of OEM business segments or suppliers; potential customer (including their Tier 1 suppliers) bankruptcies; the mix of products purchased by customers, the ability to continue to make product innovations; intellectual property litigation risk; the market for Rear Camera Display Mirrors and the success of those products; the success of certain other products (e.g. SmartBeam(R) and other camera-based product development); and other risks identified in the Company's other filings with the Securities and Exchange Commission. Therefore, actual results and outcomes may materially differ from what is expressed or forecasted. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
Second Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at 10:30 a.m. EST today. To access that call, go to http://www.gentex.com and select the "Audio Webcast" icon on the right side of the page. Other conference calls hosted by the Company will also be available at that site in the future.
About the Company
Founded in 1974, Gentex Corporation (NASDAQ: GNTX) is the leading supplier of automatic-dimming rearview mirrors and camera-based lighting- and driver-assist systems to the global automotive industry. The Company also provides commercial smoke alarms and signaling devices to the North American fire protection market, as well as dimmable aircraft windows for the commercial, business and general aviation markets. Based in Zeeland, Michigan, the international Company develops, manufactures and markets interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. More than half of the Company's interior mirrors are sold with advanced electronic features, and more than 98 percent of the Company's net sales are derived from the sale of auto-dimming mirrors to every major automaker in the world. Visit the Company's web site at www.gentex.com.
Gentex currently is working to fill a significant number of manufacturing and technical positions, primarily in the electrical, software development and engineering areas. Additional information is available at http://www.gentex.com/careers/.
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