ZEELAND, Mich. — Gentex Corp. has reported results for the fourth quarter and calendar year ended Dec. 31, 2009.
For the fourth quarter of 2009, the company’s net sales increased by 45 percent to $177.6 million compared with $122.3 million in the fourth quarter of 2008. The gross profit margin increased on a quarter-over-quarter basis from 28.4 percent in the fourth quarter of 2008 to 36.7 percent in the fourth quarter of 2009, primarily due to the company’s ability to leverage fixed overhead costs due to the 45 percent quarter-over-quarter increase in net sales.
For calendar year 2009, the company’s net sales decreased by 13 percent to $544.5 million compared with $623.8 million for calendar year 2008. The gross profit margin of 32.6 percent for the 2009 calendar year was flat compared with the gross margin for calendar year 2008, primarily due to annual customer price reductions that were offset by purchasing cost reductions.
Net income increased to $30 million in the fourth quarter of 2009, compared with a net loss of $10.4 million in the fourth quarter of 2008, primarily due to increased operating income aided by improved other income. For calendar year 2009, net income increased by four percent to $64.6 million compared with net income of $62.1 million in calendar year 2008.
Earnings per diluted share were 22 cents in the fourth quarter of 2009 compared with a loss of 8 cents per share in the fourth quarter of 2008. Earnings per diluted share were 47 cents for calendar year 2009 compared with earnings per diluted share of 44 cents during calendar year 2008.
"We are very pleased to report this excellent performance by Gentex in the fourth quarter," said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer. "It feels like we are living in a different world now compared with last year at this time, and these results are a testament to the company’s ability to leverage its costs when we experience double-digit revenue growth."
Based on the company’s expected net sales for the first quarter of 2010, Gentex expects its gross profit margin for the first quarter of 2010 to be in the same range as the fourth quarter of 2009.
