Gentex Corporation Business Report FY ended Dec. 2013
Business Highlights
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | Rate of change (%) |
Factors | |
| Sales | 1,171.9 | 1,099.6 | 6.6 |
1) |
| Operating Income | 304.7 | 234.5 | 29.9 | - |
Factors
1) Net Sales
-In 2013, the Company's net sales increased by USD 72.3 million or 6.6% over the previous year to USD 1,171.9 million. Sales to the automotive market grew by 6% due to a 10% increase in sales of auto-dimming mirror shipments. This increase was primarily due to increased penetration of exterior auto-dimming mirrors. North American automotive mirror unit shipments grew by 6% in 2013 while international sales increased by 13% in 2013.
Acquisitions
-The Company completed the acquisition of Johnson Controls' HomeLink business for USD 700 million. The acquisition is expected to increase the Company's annual revenue by USD 125 million to 150 million. HomeLink is a vehicle-based control system that enables drivers to remotely activate radio frequency convenience products such as garage door openers, entry door locks, home lighting and security systems. The Company has integrated HomeLink systems into its mirrors for over ten years. (From a press release on September 27, 2013)Outlook
-The Company expects that its revenues for the first quarter of 2014 will increase by approximately 20% over the same period in 2013 due to an increase in light vehicle production.R&D
R&D Expenditure |
(in million USD) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | |
| Total | 76.5 | 85.0 | 81.6 |
| % of sales | 6.5 | 7.7 | 8.0 |
-Research and development expenditures decreased 10% year over year compared with 2012 primarily due to planned reduced costs associated with temporary outside contract engineering and development services, which was partially offset by increased permanent staffing levels.
Patents
-As of 2013, the Company owns 421 U.S. patents and 336 foreign patents. Of the aforementioned totals, 388 U.S. patents and 324 foreign patents relate to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, and/or sensor technology.-The Company also has 154 U.S. patent applications, 122 foreign patent applications, and 5 trademark applications currently being processed.
Outlook
-The Company estimates that research and development expenses will increase by approximately 10% to 15% in the first quarter of 2014 compared with 2013 due to staffing and benefit costs along with personnel additions from the HomeLink acquisition.Investment Activities
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | |
| Overall | 55.4 | 117.5 | 120.2 |
| -Automotive Products | 54.0 | 113.6 | 115.4 |
Investment in USA
-In 2013, the Company completed a 120,000-square-foot expansion project which connected two of its manufacturing facilities in Zeeland, Michigan for a cost of USD 25 million. The Company also completed a 10,000-square-foot facility to centralize the production and distribution of chilled water used in production, chemistry labs, and air conditioning for USD 11 million.Investment Outside USA
<Bulgaria>-The Company opened a satellite engineering office in Sofia, Bulgaria in connection with the acquisition of the HomeLink business from Johnson Controls.