Gentex Expects Fourth Quarter Earnings to Exceed Analyst Estimates
15 December 1997
Gentex Expects Fourth Quarter Earnings to Exceed Analyst Estimates
ZEELAND, Mich., Dec. 15 -- Gentex Corporation ,
the Zeeland, Michigan-based manufacturer of automatic-dimming mirrors and fire
protection products, today announced that it expects that its net income for
the fourth quarter ended December 31, 1997, will exceed analyst expectations
by about 15 percent. The Company said that the analyst consensus estimate
currently is at 25 cents per share for the fourth quarter, and it expects to
report earnings per share of approximately 28-30 cents for that period.
The higher-than-expected net income in the fourth quarter is a result of
higher than expected automotive unit shipments, allowing the Company to spread
its fixed overhead costs over a greater number of units, and also due to
increased yields on the Company's newest exterior mirror sub-assemblies.
"We are very pleased to see that so many variables have moved in a
positive direction," said Gentex Executive Vice President Kenneth La Grand.
"We have reached our original goal for glass yields on our aspheric and thin
glass mirrors and have now set new goals. In addition, we gain the benefit of
economies of scale with the higher unit volumes we are experiencing."
La Grand said that he believes that the coming year holds the potential
for continued strong growth, and estimated that automotive unit shipments in
calendar 1998 could increase by about 25 to 30 percent to the range of five
million units, compared with the approximately 3.8 million units the Company
expects to ship in 1997.
Certain matters discussed in this news release are "forward-looking
statements," as defined in the Private Securities Litigation Reform Act of
1995, which involve certain risks and uncertainties, and are subject to change
based an various market, industry and other important factors. The Company
cautions investors that numerous factors (as outlined in the Company's Form
10-K filed with the Securities and Exchange Commission and other interim
reports) in some cases may affect in the future the Company's actual results,
and may cause those results to differ materially from those expressed in this
news release.
Gentex Corporation is an International company that provides high-quality
products to the worldwide automotive industry and North American fire
protection market. The Company develops, manufactures and markets proprietary
electro-optic products, including interior and exterior electrochromic,
automatic-dimming Night Vision Safety(TM) (NVSD) automotive rearview mirrors
that dim in proportion to the amount of headlight glare from trailing vehicle
headlamps, and an extensive line of fire protection products for commercial
applications.
Gentex was the first company in the world to successfully develop and
produce a commercial electrochromic mirror for the motor vehicle industry.
The Company is the leading supplier of these mirrors to the worldwide
automotive industry. Gentex customers include Audi, Bentley, BMW, Chrysler,
Daewoo, Fiat, Ford, General Motors, Gulf States Toyota, Honda, Hyundai,
Infiniti, Kia Motors, Lexus, Mercedes-Benz, Mitsubishi, Nissan, Opel, Porsche,
Rolls Royce and Southeast Toyota Distributors.
Founded in 1974, Gentex operates out of three facilities in Zeeland,
Michigan; an automotive sales and marketing office in Livonia, Michigan; an
automotive rates and engineering subsidiary in Germany, and five regional U.S.
sales offices for the Fire Protection Products Group. The Company is
recognized for its quality products, its application of world class
manufacturing principles, for its commitment to developing and maintaining a
highly skilled workforce, and for encouraging employee ownership of the
Company's stock.
SOURCE Gentex Corporation