Thursday, Gentex Corporation (GNTX), a manufacturer of automatic-dimming rearview mirrors and commercial fire protection products, reported a fourth quarter loss compared to earnings last year. The results reflected customer order and price reductions and foreign exchange rates.
Net loss for the fourth quarter was $10.4 million or $0.8 per share compared with net income of $31.8 million or $0.22 per share in the corresponding period last year. On average, nine analysts surveyed by First Call/Thomson Financial expected the company to earn $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Income from operations plunged by 71% to $9.8 million, from $33.7 million in the same quarter last year, primarily due to the decline in the gross margin as well as a $3.8 million increase in the allowance for doubtful accounts.
Quarterly sales slid by 28% to $122.3 million from $170.7 million in the prior year quarter and came in below the estimate of $131.88 million projected by analysts.
The Zeeland, Michigan-based Gentex said other income slid during the current quarter impacted by a non-cash charge for other-than-temporary impairment losses of $17.9 million recognized on equity investments, realized losses on the sale of equity investments, and lower year-end mutual fund distributions.
The gross profit margin slid to 28.4% during the current quarter from 34.2% in the year-ago period primarily due to the company's inability to leverage its fixed overhead costs due to production inefficiencies as a result of last-minute customer order reductions.
Auto-dimming mirror unit shipments fell 30% compared with the fourth quarter last year. Automotive revenues slid by 29% to $117.3 million from $165.3 million in the fourth quarter of 2007. Fire Protection revenues decreased by 9% to $5.0 million 2008 compared with the same period last year.
For the twelve-month period net income plunged 49% to $62.1 million from $122.1 million for 2007. Earnings per share were $0.44 cents compared with 85 cents for calendar year 2007. Net sales declined by 5% to $623.8 million from $653.9 million in calendar year 2007.
During the fourth quarter, the Company repurchased 2.1 million shares at a cost of approximately $17.9 million.
Looking ahead, the company expects revenues in the first quarter of 2009 to decline by about 40% from the first quarter of 2008. For the first quarter of 2008 the company generated revenues off $177.97 million.
Gentex Senior Vice President Enoch Jen said, "The production schedules have been very unstable and continue to change on a weekly basis. For that reason, we do not plan to provide full year 2009 guidance at this time. However, CSM is currently forecasting that vehicle production levels will stabilize and then gradually improve during the balance of 2009."
GNTX closed Wednesday's regular trading session at $8.63.
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