Gentex Corp. reported unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2012. For the fourth quarter of 2012, the company's net sales were flat at $260.3 million compared with the fourth quarter of 2011. Net income of $39.6 million for the fourth quarter of 2012 decreased by approximately 2% compared with net income of $40.5 million in the fourth quarter of 2011. Earnings per diluted share were flat at 28 cents in the fourth quarter of 2012 compared with the fourth quarter of 2011. Income from operations was $53.82 million compared with $55.8 million for the same period of last year. Income before income taxes was $58.5 million compared with $58.7 million for the same period of last year. Capital expenditures for the fourth quarter was $19.9 million.

For calendar year 2012, the company's net sales increased by 7% to $1.1 billion compared with $1.0 billion for calendar year 2011. Net income in calendar year 2012 increased by 2% to $168.6 million, compared with $164.7 million in calendar year 2011. Net income for both the fourth quarter and calendar year 2012 includes a $5 million (pre-tax) litigation settlement with American Vehicular Sciences (AVS). Earnings per diluted share were $1.17 for calendar year 2012 compared with $1.14 in calendar year 2011. Earnings per share for the quarter and calendar year ended December 31, 2012, include the litigation settlement with AVS. Income from operations was $234.45 million compared with $231.4 million for the same period of last year. Income before income taxes was $249.6 million compared with $244.4 million for the same period of last year. Capital expenditures for calendar year 2012 were $117.5 million. Year-to-date cash flow from operations was $257.8 million.

The company provided earnings guidance for the first quarter of 2013. For the quarter, the company estimates that net sales will decline by approximately 5% to 10% compared with the first quarter of 2012, based on IHS's January 2013 forecast for light vehicle production levels, as well as the company's 12-week customer order release schedule. Based on the company's expected net sales for the first quarter of 2013, the company currently expects that its gross profit margin for the first quarter of 2013 will be slightly down sequentially compared with the gross profit margin of 34.2% reported in the fourth quarter of 2012, primarily due to annual customer price reductions. The company estimates that 2013 capital expenditures will be significantly reduced compared with 2012 capital expenditures and approximately $50 million to $60 million. The company currently expect that the effective tax rate will be approximately 31% in the first quarter of 2013 and approximately 32% for calendar year 2013 based on current tax laws. The reduced effective tax rate for the first quarter in calendar year 2013 is primarily due to the American Taxpayer Relief Act of 2012.