Gentex quarterly profit slips amid Europe uncertainty
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Gentex makes rear-view mirrors that include rear camera displays (RCDs). |
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DETROIT (Reuters) -- Gentex Corp., which makes rear-view mirrors and related automotive parts, posted a lower quarterly profit and said orders were slowing because of economic uncertainty in Europe, its biggest market.
Gentex shares dropped today 0.4 percent to $17.17 at the close in New York, after falling as much as 12 percent for the biggest intraday slide since July 24, Bloomberg reported. They are down 42 percent this year.
"The European markets are increasingly uncertain and are becoming more volatile," CEO Fred Bauer said in a statement. "As a result, we have more downside risk for any products that we're shipping to customers in Europe."
Europe accounted for about 45 percent of the company's total mirror unit shipments in 2011.
Gentex said its automotive net sales fell 1 percent to $261.9 million in the third quarter. Net sales were flat at $268.2 million.
Gentex, one of the few companies in the United States that makes RCDs, said in July that four of its customers plan to change their primary RCD display location to center consoles from mirrors.
The company said it expects two of those four customers to begin that transition in 2013 and the others in 2014.
Net income fell to $41.9 million, or 29 cents per share, in the third quarter, from $43.4 million, or 30 cents per share, a year earlier.
Gentex is already under pressure due to delays in implementing the U.S. Kids Transportation Safety Act, which requires all new vehicles in the United States to be fitted with cameras and RCDs by September 2014.
Bloomberg contributed to this report.
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