Automotive mirror provider Gentex Corp. stated shortages in digital elements put a major drag on its fourth-quarter monetary efficiency in contrast with a 12 months earlier.
The producer of dimming rearview mirrors and camera-based driver-assistance programs stated Friday that fourth-quarter web revenue plunged 41 % to $84.2 million. Income fell 21 % to $419.8 million.
Gentex averted main provide scarcity points earlier than the newest quarter due to its “conservative stock,” however the scarcity lastly brought on the corporate to fall in need of prospects’ calls for, CEO Steve Downing stated in a press release.
Gentex shares slipped 5.3 % to $29.61 in late morning buying and selling.
Gentex is usually one of many first main auto suppliers to report its quarterly outcomes, and its efficiency is commonly seen as a bellwether for the remainder of the trade’s provide chain.
Whereas Gentex’s outcomes suffered through the quarter, all the trade continues to face provide points, and Gentex may have been hit a lot worse, Morningstar analyst David Whiston stated.
“Gentex’s This autumn was weak by their requirements, however they’re such a prime provider by a mile that the numbers aren’t that dangerous comparatively talking,” he stated in a written assertion to Automotive Information.
The provider stated will increase in uncooked supplies prices, freight-related costs and wage inflation all led to larger bills.
IHS Markit predicts 76.6 million complete mild automobiles can be produced in Gentex’s markets in 2022, however the provider is cautious of that estimate.
“We come into 2022 anticipating that at the least the primary half of the 12 months will proceed to see headwinds from provide and labor shortages that we consider will stop mild automobile manufacturing from reaching the IHS estimates,” Downing stated within the assertion.
Gentex, based mostly close to Grand Rapids, Mich., ranks No. 86 on the Automotive Information record of the highest 100 world suppliers, with worldwide elements gross sales to automakers of $1.65 billion in 2020.