Gentex Corp., a key player in the global automotive mirror segment, said fourth-quarter net income dropped 6.4 percent to $99.5 million.
Revenue in the fourth quarter fell 2 percent to $444.4 million. The Zeeland, Mich., supplier said revenue was impacted by the General Motors strike, which created a 5 percent headwind in the quarter. The results also were dinged by a 5 percent decline of global light-vehicle production from the same quarter last year.
Gentex said its gross profit margin in the fourth quarter fell 1.4 percentage points to 36.5 percent compared with the same quarter last year, but was "significantly higher" than its strike-impacted forecast of 35 to 36 percent for the quarter.
The company's shares fell 3.8 percent to close at $29.77 on a day when the Dow Jones industrial average plunged more than 600 points.
For full-year 2019, Gentex said its net income fell 3 percent to $424.7 million, driven by lower vehicle production levels, increased tariffs and the impact of the GM strike.
"With the exceptional growth rate of our Full Display Mirror product, General Motors has become one of our larger customers in 2019, which means we were disproportionately impacted by the strike," Gentex CEO Steve Downing said in a statement.
"If not for the 5 percent revenue impact of the strike, our out-performance versus the underlying vehicle production levels in the quarter was consistent with our full-year out-performance of 7 percent."
The supplier said it expects revenue to rise 3 to 8 percent in 2020 and 2021, to $1.91 billion to $2 billion, with global light-vehicle production dropping from 75.1 million in 2019 to 74.5 million in 2020, then going back up to 75.6 million in 2021.
It expects North American production to grow 1 percent to 16.5 million vehicles in 2020.
Gentex ranks No. 90 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $1.79 billion in 2018.