Gentex Q1 Profit Increases - Quick Facts

(RTTNews) - Gentex Corp. (GNTX), the Zeeland, Michigan-based manufacturer of automotive automatic-dimming rearview mirrors, automotive electronics, dimmable aircraft windows, and fire protection products, reported that its net income for the first quarter of 2014 was $68.6 million, up 51% compared with net income of $45.4 million in the first quarter of 2013. Earnings per share were $0.47, an increase of $0.15 or 47% compared with earnings per share of $0.32 in the first quarter of 2013.

Quarterly net sales were $335.7 million, up 25% compared with net sales of $269.5 million in the first quarter of 2013.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share and revenues of $324.17 million for the quarter. Analysts' estimates typically exclude special items.

The gross profit margin in the first quarter of 2014 was 39.1%, compared with a gross profit margin of 34.7% 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.

Automotive mirror unit shipments in the first quarter of 2014 increased 13% compared with the first quarter of 2013, primarily due to increased unit shipments to certain European and Asian automakers. As a result, automotive net sales in the first quarter of 2014 were $326.3 million, up 24% compared with automotive net sales of $263 million in the first quarter of 2013.

The company estimates that net sales in the second quarter of 2014 will increase approximately 15 - 20% compared to the second quarter of 2013 and estimates the gross profit margin in the second quarter of 2014 to be approximately 39 - 39.5%. Analysts expect the company to report revenues of $337.50 million for the second-quarter.

The company also estimates that E, R&D expense for the second quarter of 2014 will increase 10 - 15% compared with the second quarter of 2013. S, G&A expense is estimated to increase 10 - 15% compared with the second quarter of 2013.