NORTHVILLE — Gentherm Inc. (Nasdaq: THRM), the thermal management technology developer, reported net income of $13 million or 35 cents a share in the first quarter, down from $$25.4 million or 69 cents a share in the same quarter of 2017.
Revenue was $261.9 million, up 5 percent from $249.3 million in the same quarter a year earlier.
Increases in the cost of goods sold, higher research and development expenses, and higher selling, general and administrative expenses drove the decline in profitability.
“Our first quarter results reflect challenging market conditions, especially in the North America automotive market,” said Phil Eyler, the company’s president and CEO. “Nonetheless, I am pleased to see many areas of growth and we are gaining momentum on market launches, including our industry-first solution for the 48-volt lithium-ion battery thermal management with Daimler AG. We continue to lead the industry in innovative thermal management solutions, securing over $375 million of new awards in the quarter from top auto makers around the world.”
The company said sales grew 8.2 percent in the automotive segment but fell 20 percent in the industrial segment. Revenue growth in automotive was driven by a $15.2 million contribution from the acquisition of Etratech and favorable currency translation. Organically, automotive segment revenue was down 2.2 percent. The revenue decline in the Industrial segment, as compared to the prior-year period, resulted from significantly lower custom project revenue in the remote power generation business due to timing of shipments on customer projects, as well as lower year-over-year sales in the Cincinnati Sub-Zero blood heater cooler product which had benefitted from a competitor’s shortfall in the year-ago period.
To listen to a replay of a conference call discussing these results, visit the investor section of www.gentherm.com, or call (844) 512-2021 in the United States or (412) 317-6671 elsewhere, using the passcode 13678307.
Gentherm manufactures automotive thermal management products, including variable temperature seats, heated and cooled cupholders and storage bins, battery thermal management systems, cable systems and other electronic devices. Non-automotive products include remote power generation systems, heated and cooled furniture, patient temperature management systems, industrial environmental test chambers and related product testing services and other consumer and industrial temperature control applications. Gentherm has more than 13,000 employees in plants and offices in the United States, Germany, Canada, China, Hungary, Japan, Korea, Macedonia, Malta, Mexico, United Kingdom, Ukraine, and Vietnam.