Gentex Corporation (NASDAQ:GNTX) Q2 2023 Earnings Conference Call July 28, 2023 9:30 AM ET

Company Participants

Josh O'Berski - Director, IR

Steven Downing - President, CEO & Director

Kevin Nash - VP, Finance, CFO, Treasurer & CAO

Neil Boehm - CTO & VP, Engineering

Conference Call Participants

Luke Junk - Robert W. Baird & Co.

Ronald Jewsikow - Guggenheim Securities

John Murphy - Bank of America Merrill Lynch

Charles Sloan - Oak Family Advisors

James Picariello - BNP Paribas Exane

David Whiston - Morningstar

Operator

Good day, and thank you for standing by. Welcome to the Gentex's Second Quarter 2023 Financial Results Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Josh O'Berski, Director of Investor Relations. Please go ahead.

Josh O'Berski

Thank you. Good morning, and welcome to the Gentex Corporation Second Quarter 2023 Earnings Release Conference Call. I'm Josh O'Berski, Gentex's Director of Investor Relations, and I'm joined by Steve Downing, President and CEO; Neil Boehm, CTO; and Kevin Nash, Vice President of Finance and CFO. This call is live on the Internet and can be reached by going through the Gentex website at ir.gentex.com.

All contents of this conference call are the property of Gentex Corporation and may not be copied, published, reproduced, rebroadcasted, retransmitted, transcribed or otherwise redistributed. Gentex Corporation will hold responsible and liable any party for any damages incurred by Gentex Corporation with respect to any unauthorized use of the contents of this conference call.

This conference call contains forward-looking information within the meaning of the Gentex safe harbor statement included in the Gentex reports second quarter 2023 financial results press release from earlier this morning, and as always, shown on the Gentex website. Your participation in this conference call implies consent to these terms.

Now I'll turn the call over to Steve Downing, who will get us started today.

Steven Downing

Thanks, Josh. For the second quarter of 2023, the company reported net sales of $583.5 million compared to net sales of $463.4 million in the second quarter of last year, a 26% quarter-over-quarter increase and a new quarterly sales record for the company. For the second quarter of 2023, global light vehicle production in North America, Europe, Japan, Korea and China, increased approximately 18% when compared to the second quarter of last year.

So far, 2023 has proven to be the opposite of the last few years with year-to-date sales levels coming in higher than our beginning of the year forecast. As a result of the improvement in light vehicle production, fewer supply chain challenges and the continued strong demand for our products, this quarter resulted in an outperformance of 9% compared to our primary markets, which include North America, Europe, Japan and Korea.