Automotive mirror supplier Gentex posts 9% rise in 1st quarter earnings

Article by Christian A., on April 20, 2012

Gentex Corp., a Michigan-based supplier of automotive mirrors, posted a 9% boost in earnings for the first quarter, thanks to the higher demand from the customers in Europe and North America. The company disclosed that it anticipates revenue to increase by 15% in the next three months compared with the same period last year.

Specifically, the company revealed that the quarterly net income increased to $46.3 million while revenues also climbed 16% to $290.7 million. On the other hand, the stock of Gentex decreased after the financial report, diving 16.01% to $21.35 at the close in New York.

Senior analyst Richard Kwas at Wells Fargo commented that the reported $286-million revenue was below the forecasted $294 million. He further stated that the quarterly conference call "did not provide much comfort to growth investors, which represent a big chunk of the holder base."  He anticipated the second quarter estimates of the supplier to drop.

Typically, Gentex is one of the companies to post quarterly profits early. Despite being a relatively small supplier, some viewed its quarterly report as a tone-setter for the earnings-reporting period. Most of the results of Gentex were slightly lower or at par with the expectations of analysts.

Kwas said in the report that although the quarter was "OK", they expected an "upside potential" considering that production levels in North America were better than expected. According to Gentex, gross profit margin continued to be flat at 34.7% from the fourth quarter and decreased from 36% in the first quarter of 2011, primarily due to yearly customer price reductions, offset in a way by lower manufacturing costs. Interior mirror volume rose 17% year-over-year during the quarter to 4,735 units. U.S. shipments were up 21% while foreign shipments increased 14%.

Topics: gentex

If you liked the article, share on:

Comments

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries