Gentex Corporation, the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial fire protection products, reported 27 January 2005 financial results for the 4Q and ye…
Gentex Corporation, the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial fire protection products, reported 27 January 2005 financial results for the 4Q and year ended 31 December 2004. The company reported a 2% increase in revenues to a record of USD 126.2 million for the quarter ended 31 December 2004. Fourth quarter net income declined by 2% to USD 28.6 million compared with USD 29.1 million in the 4Q 2003. Earnings per diluted share were USD 0.37 in both 4Q periods. For the calendar year 2004, the company reported an 8% increase in revenues to a record USD 505.7 million. Net income increased by 6% to USD 112.7 million for calendar year 2004 compared with calendar year 2003. Earnings per diluted share were USD 1.44 for calendar 2004 compared with USD 1.37 for calendar year 2003. “Despite another challenging quarter, there is evidence of improvement on the margin side, as we have largely resolved the start-up production issues associated with new manufacturing processes that we began in the 3Q of 2004,” said Gentex Executive Vice President Garth Deur. Light vehicle production declines in North America contributed to the continued weakness during the 4Q. While the company reported a 7% overall increase in auto-dimming mirror unit shipments, that growth came from a 17% unit shipment increase to offshore customers. Mirror unit shipments to customers in North America declined by 2%, as light vehicle production in that region declined by 3%. Deur said that he believes that auto-dimming mirror unit shipments will be flat to 5% higher in the 1Q of 2005 compared with the 1Q of 2004, and that mirror unit shipments will increase approximately 10% for calendar year 2005 compared with calendar year 2004. These estimates are based on light vehicle production forecasts in the regions to which the company ships product, as well as the expected option rates for its mirrors on prospective vehicle models. The company has begun utilizing the light vehicle production forecasting services of CSM Worldwide, and CSM“s current forecasts for light vehicle production for calendar 2005 are approximately 15.9 million units for North America, 20.5 million for Europe and 13.1 million for Japan and Korea. For the 1Q of 2005, CSM is forecasting light vehicle production of 4.0 million units in North America, 5.2 million units in Europe and 3.5 million units in Japan and Korea. There is no significant difference in the overall production numbers when comparing CSM“s estimates to those of the company“s previous vendor for the service. Automotive revenues increased by 2% to USD 121.0 million in the 4Q and by 8% to USD 483.2 million for calendar year 2004 compared with the same periods in 2003. Auto-dimming mirror unit shipments to customers in North America declined by 2% in the 4Q and increased by 3% in calendar year 2004 compared with the same 2003 periods. North American light vehicle production declined by 4% in the 4Q and declined by 1% for calendar year 2004 compared with the same periods in 2003. Unit shipments to offshore customers increased by 17% in the 4Q and 26% for calendar year 2004, compared with the same periods in 2003. The higher growth in offshore unit shipments is primarily attributable to increased vehicle penetration in the European and Asia-Pacific regions. Light vehicle production in Western Europe declined 5% in the 4Q and by 1% for calendar year 2004 compared with the same periods in 2003. Total auto-dimming mirror unit shipments in the 4Q were approximately 2.9 million, a 7% increase over the same period in 2003. For calendar year 2004, total unit shipments reached a record 11.6 million, a 13% increase over calendar year 2003.