Gentex Corp's sales in the third quarter increased by 4% compared to the same period last year, reaching US $ 477.8 million. However, in view of the expected decline in automobile production and the continuation of GM's strike, the company lowered its full-year revenue forecast for 2019.
According to foreign media reports, Gentex Corp.'s third-quarter net income increased by 0.5% to $ 111.9 million, but given the expected decline in car production and the continued strike by General Motors, the company reduced Annual revenue expectations.
Although global light vehicle production fell by 3%, Gentex Corp's sales in the third quarter increased by 4% compared to the same period last year, reaching 477.8 million US dollars. Jingtai said that GM's strike caused the company's sales to fall 2% in the quarter. Mirror Thai's gross profit margin in the third quarter was 37.7%, which was an improvement from 37.6% in the same period in 2018. Gross profit in the third quarter of 2019 was mainly affected by tariffs, which amounted to a reduction of 110 basis points in total.
The company's operating expenses for the third quarter rose 15% year-on-year to $ 52.2 million, compared with $ 45.6 million in operating expenses for the same period last year. Revenue contributed by the company's business in the third quarter of 2019 increased 1% year-on-year to $ 128.1 million. In the third quarter, Jingtai's net income increased by 1% year-on-year to $ 111.9 million, while its net income for the same period last year was $ 111.3 million. This quarter, Jingtai's diluted earnings per share increased by 5% compared to 0.42 US dollars in the same period of 2018, to reach 0.44 US dollars.
In the third quarter of 2019, Gentex Corp Automotive's net sales were US $ 464.3 million, compared with US $ 449.2 million in the same period last year. Thanks to the increase in the delivery of Full Display Mirror® products, sales of the automotive business increased by 3% quarter-on-quarter, in addition to the growth of the exterior auto-adjustment mirror business.
Gentex Corp noted that strikes at General Motors in the past few weeks have cost it $ 7 to $ 8 million in lost sales. Jingtai is mainly responsible for the production of auto dimmer mirrors and other auto parts. Previously, the company had expected operating income in the range of $ 1.87 billion to $ 1.9 billion in 2019, but has now made adjustments that are expected to range between $ 1.84 and $ 1.87 billion. Due to IHS Markit's adjustments to global auto production outlook and additional losses caused by GM's strike activities, Mirror Thai expects the company's fourth-quarter operating income to be between $ 430 million and $ 455 million.
Gentex Corp CEO Steve Downing stated in the report: "Most of the year, the production level of light vehicles was lower than expected, and unfortunately this trend continued into the third quarter of 2019. The comparison in the previous quarter was easier, but the capacity performance in the third quarter was still lower than expected. "