Other fourth-quarter net sales, which include dimmable aircraft windows and fire protection products, increased 5 percent to $10.7 million.
The Zeeland, Michigan, company said its gross margin fell 3.1 percentage points to 31.2%. Gentex said the decline was primarily due to higher raw material costs, volatility in customer orders, an unfavorable product mix, and higher labor costs.
“Looking into 2023, we continue to see strong demand for our products. It will encourage more efforts,” Gentex CEO Steve Downing said by phone. analysts and journalists.
Operating expenses increased 7% to $59.7 million. Downing said the rise in labor costs was due to overtime pay, and the company is working to increase headcount.
Neil Boehm, vice president of engineering at Gentex, said forecasting remains a challenge due to high customer volatility.
“The company continues to take a cautious approach to inventory management as a supply chain constraint. [are] “The company is looking at certain areas to reduce inventory levels.”
Net income fell 12% this year to $360.8 million, according to Gentex. The company posted record annual sales of $1.92 billion, up 11% from a year ago. In the company’s main markets of North America, Europe, Japan and South Korea, mini vehicle production increased by 3%.
Gentex is ranked 88th in the ranking. car news A list of the world’s top 100 suppliers, it will have $1.69 billion in global parts sales to automakers in 2021.