Gentex, which makes automatic-dimming rearview mirrors for the auto industry and dimmable aircraft windows, said its first quarter sales totaled $335.7 million, a 25 percent increase over last year’s first quarter sales of $269.5 million.
ZEELAND, MI - Gentex Corp. reported a 25 percent increase in first quarter sales and a 51 percent increase in first quarter profits on Wednesday, April 23.
Gentex, which makes automatic-dimming rearview mirrors for the auto industry and dimmable aircraft windows, said its first quarter sales totaled $335.7 million, a 25 percent increase over last year’s first quarter sales of $269.5 million.
Net profits for the first quarter totaled $68.7 million, or 47 cents per share, compared to last year’s first quarter profits of 32 cents per share. The report exceeded analysts’ consensus estimates of 47 cents per share.
Company officials credited the improvements to a recovery in the European and Asian automotive markets and its Homelink division, which it acquired from Johnson Controls Inc. last year.
"A year ago automotive sales were down in the first quarter of 2013 8 percent quarter-over-quarter, primarily due to decreased vehicle production in Europe, Japan, and Korea,” said Gentex Chairman and CEO Fred Bauer in a statement issued before trading commenced on Wednesday.
“We are very pleased a year later to have continued improvement in our core electrochromic mirror business, together with the addition of HomeLink in its second quarter of business with us," Bauer said.
"We are encouraged by the year-over-year growth in mirror unit shipments and double digit sales growth in the quarter, which was assisted by strength in Europe, Japan and Korea and ultimately led to our outperforming first quarter sales guidance."
Other sales, which includes dimmable aircraft windows and fire protection products, were $9.4 million, up 44 percent ompared with $6.5 million in the first quarter of 2013.
Gentex also reported its gross profit margin improved to 39.1 percent in the first quarter, compared with a gross profit margin of 34.7 percent in the first quarter of 2013.
“The improvement in the gross profit margin is due to the impact of the HomeLink acquisition, improvements in product mix, purchasing cost reductions, and the company's ability to leverage fixed overhead costs, which were partially offset by annual customer price reductions,” the company said in its earnings report.
Jim Harger covers business for MLive/Grand Rapids Press. Email him at jharger@mlive.com or follow him on Twitter or Facebook or Google+.