Gentex Announces 4% Increase in Quarterly Cash Dividend
March 09 2020 - 7:00AM
Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital
vision, connected car, dimmable glass, and fire protection
products, today reported that its Board of Directors recently
authorized an increase of 4% to the quarterly cash dividend,
raising it to $0.12 (12 cents) per share.
“2019 was a challenging year for the industry, with large
reductions in global light vehicle production and the strike that
impacted the third and fourth quarters of 2019. Despite the end
market weakness, the Company posted out-performance against our
markets of approximately 7% for the year, and we believe that we
are well positioned to continue outperforming our markets in the
coming years,” said Steve Downing, Gentex President and CEO. “This
dividend increase represents our optimism for the coming years, and
marks the 10th consecutive year that the Company has increased its
dividend payout.”
Over the last two years, Gentex has continued to execute its
capital allocation strategy, which focuses on using free cash flow
to fund capital expenditures, maintain and grow the dividend,
pursue M&A opportunities, and maintain a robust share
repurchase philosophy.
“In 2019 we returned nearly $450 million dollars to our
shareholders through dividends and share repurchases,” said
Downing. “Our consistent capital allocation strategy enables us to
keep a real focus on developing new products and technologies,
invest in industry leading manufacturing equipment and processes,
increase dividends, and execute our share repurchase program. This
strategy and execution have combined to allow us to achieve above
market returns for our shareholders.”
The next dividend will be paid at the new quarterly cash
dividend rate and will be payable on April 22, 2020 to shareholders
of record of the common stock at the close of business on April 10,
2020.
Safe Harbor for Forward-Looking StatementsThis
news release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The statements contained in this communication
that are not purely historical are forward-looking statements.
Forward-looking statements give the Company’s current expectations
or forecasts of future events. These forward-looking statements
generally can be identified by the use of words such as
“anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”,
“goal”, “hope”, “may”, “plan”, “project”, “will”, and variations of
such words and similar expressions. Such statements are subject to
risks and uncertainties that are often difficult to predict and
beyond the Company’s control, and could cause the Company’s results
to differ materially from those described. These risks and
uncertainties include, without limitation: changes in general
industry or regional market conditions; changes in consumer and
customer preferences for our products (such as cameras replacing
mirrors and/or autonomous driving); our ability to be awarded new
business; continued uncertainty in pricing negotiations with
customers; loss of business from increased competition; changes in
strategic relationships; customer bankruptcies or divestiture of
customer brands; fluctuation in vehicle production schedules;
changes in product mix; raw material shortages; higher raw
material, fuel, energy and other costs; unfavorable fluctuations in
currencies or interest rates in the regions in which we operate;
costs or difficulties related to the integration and/or ability to
maximize the value of any new or acquired technologies and
businesses; changes in regulatory conditions; warranty and recall
claims and other litigation and customer reactions thereto;
possible adverse results of pending or future litigation or
infringement claims; changes in tax laws; import and export duty
and tariff rates in or with the countries with which we conduct
business; and negative impact of any governmental investigations
and associated litigations including securities litigations
relating to the conduct of our business. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date they are made. The Company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law or the rules of the NASDAQ
Global Select Market. Accordingly, any forward-looking statement
should be read in conjunction with the additional information about
risks and uncertainties identified under the heading “Risk Factors”
in the Company’s latest Form 10-K and Form 10-Q filed with the
SEC.
About the CompanyFounded in 1974, Gentex
Corporation (The NASDAQ Global Select Market: GNTX) is a
leading supplier of digital vision, connected car, dimmable glass
and fire protection technologies. Visit the Company’s web site
at www.gentex.com.
Contact Information:Gentex Investor & Media ContactJosh
O'Berski(616)772-1590 x5814
Gentex (NASDAQ:GNTX)
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