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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.

Total Revenue
$400M
Previous year: $475M
-15.8%
EPS
$0.32
Previous year: $0.48
-33.3%
Gross Profit
$141M
Previous year: $188M
-25.1%
Cash and Equivalents
$270M
Previous year: $400M
-32.6%
Total Assets
$2.12B
Previous year: $2.19B
-3.5%

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