Gentex Corporation Business Report FY ended Dec. 2017
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change (%) |
Factors | |
| Sales | 1,794.9 | 1,678.9 | 6.9 | 1) |
| Operating Income | 523.4 | 511.7 | 2.3 | - |
Factors
1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2017 increased by 6.9% over the previous year to USD 1,794.9 million. The primary factor for the Company’s increased sales was a 9% increase in automatic-dimming mirror shipments, from 36.1 million to 39.3 million, highlighting increased overall market penetration of automatic-dimming mirrors.
Recent Developments
-In April 2017, the Company announced that the coverage of its vehicle-integrated toll module has been expanded to include toll roads in Canada and Mexico. The Integrated Toll Module (ITM) consists of a universal toll transponder integrated into the interior mirror of a car, eliminating the need to attach multiple toll tags to the car’s windshield or manage multiple toll accounts. (From a press release on April 25, 2017)
Awards
-The Company was recognized as one of Ford’s Top-Performing Global Suppliers during the automaker’s wards ceremony held on May 17. (From a press release on May 26, 2017)
-The Company received a Supplier of the Year award from General Motors, marking the 18th time that the Company has received this award. (From a press release on April 10, 2017)
Outlook
-The Company expects that its sales in the fiscal year ending December 31, 2018 will be between USD 1.89 billion and USD 1.97 billion.
R&D Expenditure |
(in million USD) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Total | 99.7 | 94.2 | 88.4 |
| % of sales | 5.6 | 5.6 | 5.7 |
-The Company’s investment in research and development for the fiscal year ended December 31, 2017 increased by 5.8% over the previous year primarily because of an increase in staffing levels to support growth and new business development.
Product Development
Products showcased at CES 2017
-The Company announced that it will debut several new automotive technologies at CES 2017. The Company’s new camera monitoring system (CMS) uses three cameras to provide a comprehensive view of the sides and rear of the vehicle. The side-view cameras are discretely housed in smaller exterior mirrors. Video feeds from the side cameras are combined with that of a roof-mounted camera and stitched together into multiple composite views that are streamed to the driver via a unique mirror-integrated display. The Company will also demonstrate a biometric system that uses an iris scan to authenticate the driver and deliver customized vehicle security and convenience features. The system also provides an upgrade to the Company’s HomeLink wireless control system that utilizes wireless cloud-based connectivity to deliver complete personalized vehicle-to-home automation. (From a press release on January 3, 2017)
Patents
-As of 2017, the Company owns 581 U.S. patents and 722 foreign patents. Of these totals, 534 U.S. patents and 705 foreign patents are related to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, or HomeLink products.
-The Company has 269 U.S. patent and 304 foreign patent applications currently pending.
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Overall | 104.0 | 121.0 | 97.9 |
| -Automotive Products | 82.7 | 99.8 | 97.6 |
-The decrease in capital expenditures for the fiscal year ended December 31, 2017 was primarily due to decreases in production equipment purchases and building-related costs.
-The Company expects to invest between USD 115 and 130 million in capital expenditures during the fiscal year ending December 31, 2018.
Investment in U.S.
-In 2017, the Company completed construction of a 250,000-square-foot manufacturing and distribution facility in Zeeland, Michigan, U.S. The Company invested approximately USD 63 million in the development of the facility. The facility’s distribution operations began in 2016, while its manufacturing operations began in early 2017.
Investment outside U.S.
-The Company purchased an office and distribution facility near Shanghai, China in 2017, for approximately USD 7.8 million. The facility spans approximately 40,000 square feet.