Solid Increase in Net Sales Despite Setbacks in Automotive Production

In the third quarter of 2024, the company recorded an increase in net sales to $608.5 million, compared to $575.8 million in the same period of the previous year. Although global production of light vehicles decreased by 5% and by 6% in the key markets of North America, Europe, Japan, and Korea, the company was able to grow by 12% in these markets. The gross profit slightly increased to 33.5% (compared to 33.2% in the previous year), despite adverse product mix effects. Operating costs increased by 13% to $78.3 million compared to the previous year, mainly due to higher expenses for personnel and technical fees related to R&D. This led to a growth in operating expenses that outpaced the sales increase and impacted the operating profit. Net income for the quarter was $122.5 million, an increase of 17% over the previous year. Growth factors included increased net sales and additional revenue. Diluted earnings per share rose by 18% to $0.53. The company also made significant buybacks of 3.2 million shares of its common stock and plans to continue the buybacks. Despite the challenges, the company remains committed to its margin improvement plan and expects to fully achieve these goals by 2025. The development of new products, including 25 new launches in the area of auto-dimming mirrors, demonstrates the company's focus on innovation. Although the company is grappling with the current conditions of vehicle production, the outlook remains optimistic: a slight increase in vehicle production is expected for 2025, which could offer additional growth opportunities.