Gentex(GNTX) - 2024 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 2024 were $572.9 million, a decrease of 1.0% from $583.5 million in Q2 2023[1] - Gross margin for Q2 2024 was 32.9%, slightly down from 33.1% in Q2 2023, primarily due to lower sales levels and an unfavorable product mix[2] - Income from operations decreased to $114.9 million in Q2 2024, compared to $127.3 million in Q2 2023[6] - Net income for Q2 2024 was $86.0 million, down from $109.2 million in Q2 2023, influenced by lower net sales and operating income[8] - Earnings per diluted share for Q2 2024 were $0.37, compared to $0.47 in Q2 2023[9] - Net income for the first half of 2024 was $194.27 million, a decrease of 6% from $206.73 million in the same period of 2023[27] Sales Breakdown - Automotive net sales were $559.3 million in Q2 2024, a decline of 2.0% from $574.1 million in Q2 2023, with auto-dimming mirror unit shipments down by 6%[10] - Other net sales, including dimmable aircraft windows and fire protection products, increased to $13.6 million in Q2 2024 from $9.4 million in Q2 2023[11] - Total auto-dimming mirror units shipped in Q2 2024 were 12,184 thousand, a decline of 6% compared to 12,921 thousand in Q2 2023[25] Future Outlook - The company expects light vehicle production to decrease by approximately 5% in Q3 2024 compared to Q3 2023, and to decline by about 2% for the full year 2024 compared to 2023[13][14] - Updated revenue guidance for 2024 is now $2.40 - $2.50 billion, down from the original guidance of $2.55 billion[15] Research and Development - The company plans to continue investing in R&D and new product launches, with operating expenses expected to remain elevated due to these initiatives[5] - Engineering, research & development expenses increased to $44.00 million in Q2 2024, up 16% from $37.97 million in Q2 2023[27] Balance Sheet - Total assets as of June 30, 2024, were $2.74 billion, an increase from $2.61 billion at the end of 2023[29] - Cash and cash equivalents rose to $260.24 million as of June 30, 2024, compared to $226.44 million at the end of 2023[29] - Current liabilities increased to $304.73 million as of June 30, 2024, up from $271.61 million at the end of 2023[29] - Total current assets reached $1.08 billion, an increase from $997.74 million at the end of 2023[29] Dividends - The company declared cash dividends of $0.12 per share for both Q2 2024 and Q2 2023[27]