Gentex Reports First Quarter Results and Announces Extension of

General Motors Long-Term Agreement 
ZEELAND, Mich., April 20 /PRNewswire-FirstCall/ -- Gentex Corporation
(Nasdaq: GNTX), the Zeeland, Michigan-based manufacturer of automatic-dimming
rearview mirrors and commercial fire protection products, today reported
financial results for the first quarter ended March 31, 2005.  The Company
also reported that it has recently negotiated an extension to its long-term
agreement with General Motors Corporation (GM) for interior auto-dimming
rearview mirrors. 
The Company's net sales declined by one percent from $129.3 million in the
first quarter of 2004 to $127.6 million in the first quarter of 2005.
Revenues were down slightly even though auto-dimming mirror unit shipments
increased by two percent, primarily due to price reductions granted to
automakers and a shift in mirror product mix. 
First quarter net income declined by 13 percent to $25.9 million compared
with $29.8 million in the first quarter last year.  Earnings per diluted share
were 17 cents in the first quarter of 2005 compared with 19 cents in the first
quarter of 2004.  Due to the Company's April 1, 2005, announcement of a two-for-one stock split effected in the form of a 100 percent common stock
dividend for each share outstanding, all share and per share calculations for
the first quarter ended March 31, 2005, are reported on a post-split basis.
The ex-dividend date (date on which the share price will be halved and shares
outstanding will double) will be May 9, 2005. 
"We knew that the first quarter was going to be tough, given the current
environment at certain automotive customers headquartered in North America,"
said Gentex Executive Vice President Garth Deur.  "There were a number of
unforeseen additional vehicle assembly plant shutdowns at GM that not only
contributed to the lower unit shipment growth rate, but also to a less
favorable mix of mirror unit shipments. 
"Despite the weakness at GM, our strong mirror unit shipments to European
and Asian transplant assembly operations in North America and to our customers
in Europe resulted in net unit growth for the quarter," said Deur. 
The Company also reported that it recently negotiated an extension to its
existing long-term agreement with GM whereby Gentex will be sourced all of the
interior auto-dimming mirror programs for GM and its worldwide affiliates
through 2009. 
"The extension of this agreement represents incremental featured interior
auto-dimming mirror units in the range of 500,000 annually, beginning in the
second half of 2005," said Deur.  The Company's previous agreement with GM was
through the 2006 model year. 
During the first quarter ended March 31, 2005, the Company's gross margin
declined on both a year-over-year and sequential basis, primarily due to
customer price reductions and lower sales growth combined with higher fixed
overhead expense. 
"With the relatively flat year-over-year mirror unit shipments, we ran
production lines at lower volumes," said Deur.  "Leverage is important to our
gross margin, and we believe that we'll have more of an opportunity to
leverage our fixed manufacturing overhead costs starting in the second quarter
of 2005, and ramping up through the rest of the year.  We currently expect
unit shipment growth in the second quarter of five to ten percent compared to
the second quarter of 2004." 
Deur said that the Company's current estimate for mirror unit shipment
growth for calendar 2005 is approximately ten percent.  The unit shipment
estimates provided by the Company for the 2005 second quarter and calendar
year are based on the generally flat light vehicle production forecasts of CSM
for North America, Europe, Japan and Korea. 
Some of the incremental growth in the second half of 2005 will come from
new vehicle models that will offer the Company's proprietary SmartBeam(TM)
Intelligent High-Beam Headlamp Control System, according to Deur.  The Jeep
Commander and Jeep Grand Cherokee SRT8, new models in the Jeep family of
vehicles, will offer SmartBeam as part of a safety package in the 2006 model
year.  The new 2006 Cadillac DTS also will offer SmartBeam in an option
package. 
"The successful launch of the SmartBeam product on 2005 model year
programs at both Cadillac and Jeep have resulted in this new business on these
three additional vehicle models for the 2006 model year," said Deur.  "We're
also looking forward to launching SmartBeam for a major European automaker
starting early next year, and the significant interest from other automakers
gives us more confidence that SmartBeam will become an important business for
Gentex." 
Automotive revenues decreased by one percent to $122.0 million in the
first quarter of 2005 compared with the same period last year.  Fire
Protection revenues increased two percent to $5.7 million for the first
quarter of 2005 compared with the first quarter of 2004. 
Total auto-dimming mirror unit shipments in the first quarter were
approximately 3.0 million, a two percent increase over the same period last
year. 
Auto-dimming mirror unit shipments to customers in North America declined
by four percent in the first quarter of 2005 compared with the same quarter
last year.  North American light vehicle production declined by five percent
in the first quarter of 2005 compared with the same period in 2004. 
Unit shipments to offshore customers increased by seven percent in the
first quarter of 2005 compared with the same period in 2004.  The growth in
offshore unit shipments is primarily attributable to increased vehicle
penetration in Europe.  Light vehicle production in Europe increased by one
percent in the first quarter of 2005 and by four percent for Japan and Korea
in that same period, compared with the same prior year periods. 
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act, as amended, that are based on management's
belief, assumptions, current expectations, estimates and projections about the
global automotive industry, the economy and the Company itself.  Words like
"anticipates," "believes," "confident," "estimates," "expects," "forecast,"
"likely," "plans," "projects," and "should," and variations of such words and
similar expressions identify forward-looking statements.  These statements do
not guarantee future performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict with regard to timing, expense,
likelihood and degree of occurrence.  These risks include, without limitation,
employment and general economic conditions, the pace of economic recovery in
the U.S. and in international markets, the pace of automotive production
worldwide, the types of products purchased by customers, competitive pricing
pressures, currency fluctuations, the financial strength of the Company's
customers, the mix of products purchased by customers, the ability to continue
to make product innovations, the success of newly introduced products (e.g.
SmartBeam), and other risks identified in the Company's filings with the
Securities and Exchange Commission.  Therefore actual results and outcomes may
materially differ from what is expressed or forecasted.  Furthermore, the
Company undertakes no obligation to update, amend, or clarify forward-looking
statements, whether as a result of new information, future events, or
otherwise. 
A conference call related to this news release will be simulcast live on
the Internet beginning at 1:30 p.m. Eastern Daylight Saving Time.  To access
that call, go to http://www.gentex.com and select the "Audio Webcast" icon in
the lower right-hand corner of the page.  Other conference calls hosted by the
Company will also be available at that site in the future. 
Founded in 1974, Gentex Corporation (Nasdaq: GNTX) is an international
company that provides high-quality products to the worldwide automotive
industry and North American fire protection market.  Based in Zeeland,
Michigan, the Company develops, manufactures and markets interior and exterior
automatic-dimming automotive rearview mirrors that utilize proprietary
electrochromic technology to dim in proportion to the amount of headlight
glare from trailing vehicle headlamps.  Many of the mirrors are sold with
advanced electronic features, and approximately 96 percent of the Company's
revenues are derived from the sales of auto-dimming mirrors to nearly every
major automaker in the world. 


                     GENTEX CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                     (unaudited)
                                             Three Months Ended March 31,
                                               2005                2004
    Net Sales                              $127,641,720        $129,327,548
    Costs and Expenses
      Cost of Goods Sold                     79,588,903          74,443,276
      Engineering, Research & Development     7,977,385           7,443,288
      Selling, General & Administrative       6,839,831           6,745,121
      Other Expense (Income)                 (4,623,369)         (3,474,612)
    Total Costs and Expenses                 89,782,750          85,157,073
    Income Before Provision
     for Income Taxes                        37,858,970          44,170,475
    Provision for Income Taxes               11,926,000          14,355,000
    Net Income                              $25,932,970         $29,815,475
    Earnings Per Share
      Basic                                       $0.17               $0.19
      Diluted                                     $0.17               $0.19
    Weighted Average Shares:
      Basic                                 155,215,506         153,704,754
      Diluted                               156,713,620         156,874,134
    Cash Dividends Declared per Share            $0.085              $0.075


Note: All share and per share amounts reflect the 2-for-1 stock split that
will be effected in the form of a 100 percent common stock dividend for each
share outstanding, announced on April 1, 2005.  The ex-dividend date will be
May 9, 2005. 


                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                                 (unaudited)
                                                  March 31,        Dec. 31,
                                                     2005            2004
    ASSETS
    Cash and Short-Term Investments              $516,890,229    $494,880,260
    Other Current Assets                          106,447,610      97,728,834
    Total Current Assets                          623,337,839     592,609,094
    Plant and Equipment - Net                     140,775,607     135,649,119
    Long-Term Investments and Other Assets        125,860,134     128,601,215
    Total Assets                                 $889,973,580    $856,859,428
    LIABILITIES AND SHAREHOLDERS' INVESTMENT
    Current Liabilities                           $71,780,023     $50,856,258
    Long-Term Debt                                          0               0
    Deferred Income Taxes                          21,119,113      22,723,198
    Shareholders' Investment                      797,074,444     783,279,972
    Total Liabilities &
     Shareholders' Investment                    $889,973,580    $856,859,428
                      AUTO-DIMMING MIRROR UNIT SHIPMENTS
                                 (Thousands)
                                       First Quarter
                                       Ended March 31,
                                       2005      2004      % Change
    Domestic Interior                 1,039     1,070         -3%
    Domestic Exterior                   434       462         -6%
    Total Domestic Units              1,473     1,533         -4%
    Foreign Interior                  1,141     1,066          7%
    Foreign Exterior                    416       383          9%
    Total Foreign Units               1,557     1,449          7%
    Total Interior Mirrors            2,180     2,137          2%
    Total Exterior Mirrors              850       846          1%
    Total Mirror Units                3,030     2,982          2%


Note: Certain prior year amounts have been reclassified to conform with
the current year presentation.  Amounts may not total due to rounding. 

SOURCE  Gentex Corporation 
CONTACT:
Connie Hamblin of Gentex Corporation, +1-616-772-1800
-0- Apr/20/2005 15:30 GMT
 
 
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