Gentex Corporation Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of
Sales 1,375.5 1,171.9 17.4


Operating Income 398.8 304.7 30.9 -

1) Net Sales
-In the fiscal year ended December 31, 2014, the Company's net sales increased by 17.4% over the previous year to USD 1,375.5 million. This increase was caused by both the acquisition of HomeLink from Johnson Controls and an 11% increase in auto-dimming mirror shipments. Shipments in North America increased by 6% compared to the previous year, while international shipments rose 14%.


-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)


-The Company estimates that its sales for 2015 will be between USD 1.47 billion and USD 1.54 billion.


R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Total 84.2 76.5 85.0
% of sales 6.1 6.5 7.7

-Expenditures in research and development in the fiscal year ended December 31, 2014 increased by 10% over the previous year due to an increase in the number of employees working in research and development.

Product Development

Full Display Mirror rear vision system
-The Company has developed its all-new Full Display Mirror, an intelligent rear vision system that uses a custom, externally mounted camera and mirror-integrated video display to optimize a vehicle's rearward view. The mirror offers bi-modal functionality. In mirror mode, the product functions as a standard rearview mirror. During nighttime driving, digital light sensors communicate via a microprocessor to automatically darken the mirror when glare is detected. But with the flip of a lever, the mirror enters display mode, and a clear, bright, LCD display appears through the mirror's reflective surface, providing a wide, unobstructed rearward view. (From a press release on December 17, 2014)


-As of 2014, the Company owns 495 U.S. patents and 556 foreign patents. Of these totals, 480 U.S. patents and 546 foreign patents are related to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, and/or HomeLink products.

-The Company has 146 U.S. patent applications and 70 foreign patent applications currently pending.

Investment Activities

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 72.5 55.4 117.5
-Automotive Products 71.0 54.0 113.6

-The increase in capital expenditures for the fiscal year ended December 31, 2014 was primarily due to an increase in production equipment purchases and building related costs.

Investment in U.S.

-In 2014, the Company began construction of a 250,000-square-foot manufacturing and distribution facility in Zeeland, Michigan. The Company expects the total cost of the project to be between USD 30 million and USD 35 million. Construction is scheduled to finish in 2016. When completed, the new facility is expected to have an annual production capacity between five million and seven million mirrors.


-The Company's expected capital expenditures for 2015 will range between USD 95 million and USD 105 million, most of which will be used to purchase production equipment.