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Gentex Increases Quarterly Cash Dividend by Nine Percent

^{Published on 2011-02-21 13:05:19 - Market Wire}
 

ZEELAND, MI--(Marketwire - February 21, 2011) - Gentex Corporation (NASDAQ: [ GNTX ]), the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and camera-based active-safety systems for the automotive industry, commercial fire protection products and dimmable aircraft windows, today announced that its Board of Directors approved a nine percent increase in its quarterly cash dividend rate from $0.11 (eleven cents) to $0.12 (twelve cents) per share. The Board subsequently declared a quarterly cash dividend of $0.12 per share that will be payable April 21, 2011, to shareholders of record of the common stock at the close of business on April 7, 2011.

"We originally established the cash dividend as a result of the reduced individual income tax rate on dividends," said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer. "Our goal since then has been to have the dividend rate be meaningful, sustainable and increasing over time, generally in line with the Company's operating cash flow and net income.

"The Company's strong financial performance in calendar year 2010, coupled with the continued favorable tax treatment of cash dividends, prompted this dividend rate increase," said Bauer.

"We are pleased with the two-year extension on the favorable tax treatment of cash dividends, and continue to believe that the cash dividend is an appropriate way to return cash to the Company's shareholders based on the current U.S. tax laws," said Bauer.

Safe Harbor Statement

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, the ability to control and leverage fixed manufacturing overhead costs, unit shipment and revenue growth rates, the ability to control E,R&D and S,G&A expenses, gross margins and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecast," "hopes," "likely," "plans," "projects," "optimistic" 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, worldwide automotive production, the maintenance of the Company's market share, the ability to achieve purchasing and engineering cost reductions, customer inventory management, supplier part shortages, competitive pricing pressures, currency fluctuations, interest rates, equity prices, the financial strength/stability of the Company's customers (including their Tier 1 suppliers), supply chain disruptions, potential sale of OEM business segments or suppliers, potential customer (including their Tier 1 suppliers) bankruptcies, the mix of products purchased by customers, the ability to continue to make product innovations, the market for Rear Camera Display Mirrors and the success of those products, the success of certain other products (e.g. SmartBeam®), and other risks identified in the Company's other 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.

About the Company

Founded in 1974, Gentex Corporation (NASDAQ: [ GNTX ]) is the leading supplier of automatic-dimming rearview mirrors and camera-based active safety systems to the global automotive industry. The Company also provides commercial smoke alarms and signaling devices to the North American fire protection market, as well as dimmable aircraft windows for the commercial, business and general aviation markets. Based in Zeeland, Michigan, the international 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. More than half of the Company's interior mirrors are sold with advanced electronic features, and more than 98 percent of the Company's net sales are derived from the sale of auto-dimming mirrors to nearly every major automaker in the world.