Gentex Corporation Business Report FY ended Dec. 2015
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of change (%) |
Factors | |
| Sales | 1,543.6 | 1,375.5 | 12.2 |
1) |
| Operating Income | 458.8 | 398.8 | 15.0 | - |
Factors
1) Net Sales
-The Company's net sales for the fiscal year ended December 31, 2015 increased by 12.2% to USD 1,543.6 million. Sales increased primarily due to a 14% increase in sales volume of automatic-dimming mirror shipments, from 29 million units to 33 million units. This highlighted in the increasing market penetration of automatic-dimming mirrors. Sale volumes of automotive mirrors in North America increased by 13%, while international volumes increased by 14%.
Recent Developments
-In 2015, the Company began making volume shipments of the Full Display Mirror, a mirror with an integrated LCD display which can provide video of the vehicle's rearward view.
Business Agreements
-The Company signed an exclusive agreement with TransCore, a transportation logistics software provider, to integrate TransCore's Universal Toll Module technology into its automatic-dimming rearview mirrors. As the mirror is in the ideal location for a toll transponder, the technology removes the driver's need to attach various toll tags to the windshield.
Contracts
-At CES 2016, the Company announced that it will demonstrate several automotive vision-enhancing technologies, including its all-new Full Display Mirror (FDM) on the 2016 Cadillac "CT6" luxury sedan and the 2017 Cadillac "XT5" crossover. In addition, the two models will be equipped with several of the Company's technologies, including glare-eliminating automatic-dimming exterior mirrors with side blind zone alerts on the "XT5", and HomeLink car-to-home automation system for both vehicles. (From a press release on December 30, 2015)
Awards
-The Company announced that its Full Display Mirror (FDM) was selected as a finalist for a 2016 Automotive New Pace Award. The FDM utilizes a custom CMOS imager to capture video behind the vehicle, and then streams it to the LCD display integrated into the mirror. Unique to the Full Display Mirror is its bi-modal capabilities. In mirror mode, the FDM acts as a standard automatic-dimming rearview mirror. In display mode, the LCD display activates, providing a clear view behind the vehicle. (From a press release on October 27, 2015)
Outlook
-The Company expects that its sales for 2016 will be between USD 1,640 million and USD 1,720 million.
R&D Expenditure |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Total | 88.4 | 84.2 | 76.5 |
| % of sales | 5.7 | 6.1 | 6.5 |
-The Company's investment in research and development for the fiscal year ended December 31, 2015 increased by 5.0% over the previous year due to an increase in the number of employees working in research and development.
Patents
-As of 2015, the Company owns 533 U.S. patents and 687 foreign patents. Of these totals, 491 U.S. patents and 607 patents are related to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, or HomeLink products.
-The Company has 244 U.S. patent applications and 217 foreign patent applications currently pending.
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Overall | 97.9 | 72.5 | 55.4 |
| -Automotive Products | 97.6 | 71.0 | 54.0 |
-The increase in capital expenditures for the fiscal year ended December 31, 2015 was primarily due to an increase in production equipment purchases and building related costs.
Investment in U.S.
-In 2015, the Company continued construction of a 250,000-square-foot manufacturing and distribution facility in Zeeland, Michigan, U.S. The Company expects the total cost of the project to be between USD 45 million and USD 50 million. Construction is scheduled to finish in 2016. Distribution operations are expected to begin in mid-2016, while production is expected to begin in early 2017. When completed, the new facility is expected to have an annual production capacity between five million and seven million mirrors.
Outlook
-Based on demand for automatic-dimming mirrors, and current facility expansion projects, the Company expected capital expenditures for the fiscal year ending December 31, 2016 to range between USD 115 million and USD 130 million. Most of the capital expenditures will go towards the purchase of production equipment.