Gentex Reports Expected Q3 Income
28 August 1998
Gentex Cites Impact of GM Strikes On Third Quarter, Expects Stronger Fourth Quarter, and Authorizes Share Repurchase ProgramZEELAND, Mich., Aug. 27 -- Gentex Corporation , the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial fire protection products, today reported that it expects the impact of the General Motors strikes to be a reduction of approximately 3 cents per share for the third quarter ended September 30, 1998. The Company also expects growth in unit shipments of its automatic-dimming rearview mirrors in the fourth quarter to be 25-30 percent compared with the fourth quarter of 1997, and current street expectations for fourth quarter unit shipment growth of approximately 10-15 percent. In addition, the Company has authorized a share repurchase program over the next twelve months. Under the share repurchase program, the Company may, from time to time, purchase up to two million shares of its common stock based on a number of factors, including market conditions, the market price of the Company's common stock, anti-dilutive effect on earnings, available cash and other factors as the Company deems appropriate. "The long-term, solid fundamentals of Gentex have not changed, and we believe that the recent decline in the Company's stock price does not properly reflect those fundamentals," said Gentex Executive Vice President Kenneth La Grand. "This buyback program signifies our confidence in the long-term prospects for the Company." La Grand said that the anticipated strength in the fourth quarter is primarily attributable to new automotive mirror business and the shift of some General Motors units from the third to the fourth quarter, as GM attempts to make up some of the units it lost in the third quarter as a result of the United Auto Workers strikes. Certain matters discussed in this news release are "forward-looking statements" 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. Revenues from the sale of automatic-dimming mirrors represent about 90 percent of total Company revenues. 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, Southeast Toyota Distributors and Toyota. Founded in 1974, Gentex operates out of three facilities in Zeeland, Michigan; an automotive sales and marketing office in Livonia, Michigan; automotive sales and engineering subsidiaries in Germany and Japan; 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.