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Sep 30, 2021
Gentex Q3 2021 Earnings Report
Gentex experienced a decrease in net sales due to reduced light vehicle production and reported a gross profit margin impacted by lower sales and increased costs.
Key Takeaways
Gentex reported net sales of $399.6 million for Q3 2021, a decrease compared to Q3 2020, due to a 23% reduction in light vehicle production. The company's gross margin was 35.3%, impacted by lower sales and increased costs. Net income for the quarter was $76.7 million, or $0.32 per diluted share.
Net sales reached $399.6 million, outperforming light vehicle production reduction by 700 basis points.
Gross profit margin was 35.3%.
Net income totaled $76.7 million.
2.83 million shares were repurchased at an average price of $32 per share.
Gentex
Gentex
Forward Guidance
The Company’s current forecasts for light vehicle production for the fourth quarter of 2021, and full years 2021 and 2022 are based on the mid-October 2021 IHS Markit forecast for light vehicle production in North America, Europe, Japan/Korea and China.
Positive Outlook
- Overall vehicle inventory levels are at historic lows.
- Demand from customers continues to remain strong.
- Interest from customers in core products and new technology areas for future projects is very high.
- Long term growth prospects remain very strong.
- The next several years will produce above market growth rates that should provide an opportunity to achieve excellent shareholder returns.
Challenges Ahead
- Expectations to continue to be challenging due to supply chain constraints