Feb. 29 (Bloomberg) -- Gentex Corp. slid 14 percent, its biggest decline in more than six years, after the U.S. again delayed issuing a rule that may require cars and light trucks to have rear-view cameras.
Gentex fell to $23.65 at the close in New York, the biggest drop since January 2006. The shares have declined 20 percent this year after rising 0.1 percent in 2011. The rule was to have been posted by today’s deadline. Gentex rose 4.5 percent yesterday as investors anticipated issuance of the rule.
A 2008 auto-safety law signed by President George W. Bush mandated the Transportation Department to issue the requirement by the end of 2011. It’s now being pushed back a second time by Transportation Secretary Ray LaHood and will be posted by the end of this year, the department said in an e-mailed statement yesterday.
Gentex makes rear- and side-view mirrors that include camera displays. It competes against Magna International Inc., an Aurora, Ontario-based maker of the mirrors and the cameras, as well as producers of systems that display images from backup cameras in navigation systems.
Gentex, based in Zeeland, Michigan, may have a revenue increase of as much as 20 percent on shipment growth of as much as 14 percent spanning three to four years, David Leiker, a Robert W. Baird & Co. analyst, said in a Dec. 28 report. He recommends buying the shares. The company reported $1.02 billion in revenue last year.
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