The US manufacturer of automatic-dimming rear-view mirrors and commercial fire protection products Gentex Corporation has reported record revenues and net income for the first quarter ended 31 March 1…
The US manufacturer of automatic-dimming rear-view mirrors and commercial fire protection products Gentex Corporation has reported record revenues and net income for the first quarter ended 31 March 1997. The company achieved an all-time sales record in the first quarter of 1997 with revenues of US$ 41.9 million, a 17% increase over revenues of US$ 35.9 million reported in the first quarter last year. Operating income of US$ 10.0 million for the first quarter of 1997 increased by 22% compared with operating income of US$ 8.2 million during the first quarter of 1996. Gentex reported record net income of US$ 7.4 million, or 21 cents per share, for the 1997 first quarter compared with net income of US$ 3.3 million, or 10 cents per share, in the same period in 1996. Excluding a patent litigation settlement and expense in the first quarter of 1996, net income for that period would have been US$ 6.8 million, or 20 cents per share. “Both Automotive and Fire Protection Products Revenues were relatively strong during the first quarter,” said Gentex Executive Vice President Kenneth La Grand. “However, margins were affected by market price reductions not fully recovered by productivity improvements, and by costs associated with start-ups and yield loss for several major new exterior electrochromic mirror programmes.” La Grand said that there is continued pricing pressure from automakers and that he does not expect the short-term situation to change. He said that the company“s long-term goals include maintaining a consistently high share of the electrochromic mirror market, and continuing to reduce the manufacturing and component costs for its mirrors. The company began making high-volume shipments of its new “aspheric” wide-angle exterior mirror to European customers during the first quarter, and also began pilot production of its “thin glass” lightweight exterior electrochromic mirrors for several light trucks. La Grand said that mirror unit shipments to auto customers outside North America increased by 46% compared with the first quarter of 1996. Shipments to customers in North America increased by 11%, compared with about 5% growth in North American light vehicle production. Total automotive mirror unit shipments for the first quarter were 864,000, compared with 720,000 units for the same quarter in 1996. Total exterior mirror units shipped for the 1997 first quarter were 207,000 compared with 136,000 for the first quarter of 1996. Unit shipments to auto customers outside North America were 264,000 for the first quarter of 1997, compared with 181,000 for the same period in 1996.