Gentex Expects First Quarter Earnings to Exceed Analyst Estimates
17 March 1998
Gentex Expects First Quarter Earnings to Exceed Analyst Estimates
ZEELAND, Mich., March 17 -- 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 first quarter ended March 31, 1998, will exceed analyst
expectations by about 10 percent. The Company said that the analyst consensus
estimate currently is at 30 cents per share for the first quarter, and it
expects to report earnings per share of approximately 32-34 cents for that
period.
The higher-than-expected net earnings in the first quarter is a result of
higher than expected automotive unit shipments, allowing the Company to spread
its fixed overhead costs and operating expenses over a greater number of
units.
"The momentum of the 1998 model year is carrying forward into the first
half of 1998," said Gentex Executive Vice President Kenneth La Grand. "This
quarter is another good example of how we can gain from 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 30 percent to approximately five million
units, compared with the 3.9 million units the Company shipped in 1997. He
also said that the year-over-year rate of growth in the second half of 1998
may be moderately lower compared with the growth rate in the first half of
1998, due primarily to major customer new model introductions and slower
customer production ramp ups.
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 on 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) (NVS(R)) 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 sales 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