NORTHVILLE — Gentherm Inc. (NASDAQ: THRM), the Northville-based manufacturer of thermal management products, reported net income of $26 million or 71 cents a share in the fourth quarter of 2016, down from $28.4 million or 78 cents a share a year earlier.
Revenue was $236.5 million for the quarter, up from $212.3 million a year earlier.
For the full year, net income was $76.6 million or $2.09 a share, down from $95.4 million or $2.62 a share in 2015. Revenue was $917.6 million, up from $856.4 million in 2015.
For both the quarter and the year, profitability declined because operating expenses rose faster than revenue. Included were higher selling, general and administrative expenses, as well as higher research and development spending.
The company reported 2 percent growth in its sales of climate-controlled automotive seating, and double-digit growth in seat heaters and steering wheel heaters, up 10 and 12 percent respectively.
Revenue fell 15 percent for the Gentherm Power Technologies business.
“Overall, Gentherm performed well during the quarter as we saw continued revenue growth of 11% and substantial cash flow generation,” President and CEO Daniel R. Coker said in a press release. “As we look ahead to 2017 and beyond, we remain focused on growth while deploying our capital where it can generate the most value for our shareholders. … We will continue to invest in our business for long-term growth to further enhance profitability. Two examples of our focus on growth that we were very excited to see begin operating during the quarter are our new CSZ facility expansion, which was designed to allow for meaningful future growth, and our new technology center.”
The company said the increased R&D spending is developing new products, including automotive interior thermal management devices, medical thermal management devices, battery thermal management devices, battery management systems and advanced automotive electronics. The higher selling, general and administrative expenses included a management reorganization and acquisition expenses.
The company also released an adjusted earnings per share figure for the fourth quarter excluding one-time expenses of 68 cents, up from 61 cents in the year-earlier period.
The company said it expects 2017 revenue growth of between 5 and 10 percent.
To listen to a conference call discussing these results, visit the events page of the investor section of www.gentherm.com, or call (800) 585-8367 in the United States or (404) 537-3406 elsewhere, using the pass code 61267290.