Gentex Corp. (GNTX) posted second-quarter net income of $40.77 million or $0.28 per share, higher than $38.47 million or $0.27 per share in the previous year.
Net sales for the quarter grew 15 percent to $280.26 million from 243 million in the same quarter last year.
Gross margin declined to 33.1 percent from 35.2 percent in the second quarter of 2011. These declines in the gross profit margin were primarily due to impact of annual customer price reductions and product mix, partially offset by purchasing cost reductions, the company said.
Fred Bauer, Chairman of the Board and Chief Executive Officer stated, "While we are pleased with the growth in net sales in the second quarter, we recognize that we have work to do to improve the gross profit margin. The results from the second quarter of 2012 also demonstrate that we have reduced the rate of increase in our operating expenses, due to a focused effort to make sure those expenses are in line with the Company's top line revenue growth."
Looking ahead to the third quarter, the company expects net sales to be in the range of flat to an increase of five percent compared with the third quarter of 2011.
The company currently expects gross profit margin for the third quarter to increase sequentially by approximately 0.5 percentage point compared with the gross profit margin of 33.1 percent reported in the second quarter.
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