ZEELAND, Mich. (AP) -- Auto parts supplier Gentex Corp.'s net income rose 10 percent in the fourth quarter on increased shipments of its rearview mirrors to automakers.
But profit fell short of Wall Street estimates, and much of the company's outlook range for the current quarter was also shy of analyst expectations. Gentex cautioned that auto production in China and Europe is slowing, and many customers are delaying orders of its RCD Mirrors, which have cameras displaying the area behind a car, until government regulations are finalized.
Shares slid $1.48, or 4.9 percent, to $28.64 in morning trading Tuesday.
The Zeeland, Mich. company reported on Tuesday that it earned $40.5 million, or 28 cents per share, in the October-December quarter. That's up from $36.9 million, or 26 cents per share, the year before. Analysts surveyed by FactSet expected higher earnings of 30 cents per share.
Revenue rose 17 percent to $260.3 million from $222.1 million, as shipments of the company's automatic-dimming rearview mirror shipments rose 16 percent. But analysts expected stronger growth, to $273.1 million.
The company said that the Thailand flooding that disrupted auto market supply chains was still pressuring its business. Gentex's gross margin also fell to 34.7 percent from 35.8 percent because of annual customer price reductions. Gross margin measures how much money the company actually keeps from each dollar of revenue after factoring in costs.
For the year, Gentex earned $164.7 million, or $1.14 per share, compared with earnings of $137.7 million, or 98 cents per share, in 2010. Revenue grew to $1.02 billion from $816.3 million.
In the current quarter, Gentex anticipates revenue will climb about 15 percent to 20 percent from a year ago. This implies revenue in a range of $288.5 million to $301 million. The midpoint is below analysts' forecast of $297.3 million.
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