The Zeeland-based maker of automatic dimming rearview mirrors and camera-based lighting and driver assist systems for cars, said its first quarter profits were $45.4 million, down about 2 percent from the first quarter of 2012.
Gentex Corp. reported reduced sales, flat profits for its first quarter The Zeeland-based maker of automatic dimming rearview mirrors and camera-based lighting and driver assist systems for cars, said its first quarter profits were $45.4 million, down about 2 percent from the first quarter of 2012.
Earnings per share were flat at 32 cents per share, beating Wall Street estimates of 30 cents per share. The report was released Tuesday, April 23, before the stock market opened.
While sales were down, company officials said they also cut expenses, thereby improving their profit margins despite reduced sales and price cuts from their suppliers.
"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 and Chief Executive Officer Fred Bauer, in a news release.
"We also are pleased that we are continuing to demonstrate positive efficiencies within our operating expenses."
Looking ahead, Gentex officials said the European auto market, its largest shipping destination, continue to be a problem as customers cut back on orders. “Accurate forecasting in this environment remains very difficult,” according to the Gentex release.
While North American auto sales are expected to increase 4 percent in the second quarter, sales in Japan and Korea are expected to fall by 10 percent while European sales are expected to drop 3 percent.
Gentex executives are scheduled to discuss their earnings report in a 10:30 a.m. teleconference on Tuesday, April 23. Mlive will report on the teleconference in the “Comments” section of this article.
E-mail Jim Harger: jharger@mlive.com and follow him on Twitter at twitter.com/JHHarger