Gentherm Incorporated reported its financial results for the third quarter and the nine months ended September 30, 2024, showing modest revenue growth and improved profitability compared to the previous fiscal period. The company generated product revenues of $371.5 million for Q3 2024, a 1.5% increase from $366.2 million in Q3 2023. For the nine months ended September 30, 2024, total product revenues reached $1.1 billion, slightly up from $1.1 billion in the same period of 2023.
Gross margin for Q3 2024 was $94.9 million, up from $86.2 million in Q3 2023, while the gross margin for the nine-month period increased to $280.3 million from $255.3 million in 2023. Operating income also saw significant growth, rising to $32.3 million in Q3 2024 from $23.7 million in Q3 2023, and for the nine months, operating income increased to $83.4 million from $45.7 million.
Net income for Q3 2024 was $16.0 million, a slight increase from $15.8 million in Q3 2023. For the nine months, net income surged to $49.6 million compared to $22.3 million in the prior year. Basic earnings per share for Q3 2024 were $0.51, up from $0.48 in Q3 2023, and for the nine months, it rose to $1.58 from $0.67.
The company’s restructuring plan, initiated in September 2023, aimed at enhancing manufacturing productivity by relocating operations from Greenville, South Carolina, to Monterrey, Mexico. During Q3 2024, Gentherm sold its Greenville facility, realizing a gain of $1.7 million, which was recorded as a reduction of restructuring expenses. Total restructuring expenses for the nine months ended September 30, 2024, amounted to $12.3 million, compared to $3.4 million in the same period of 2023.
Gentherm's cash and cash equivalents stood at $150.6 million as of September 30, 2024, with total current assets increasing to $737.0 million from $687.6 million at the end of 2023. The company reported total liabilities of $637.5 million, up from $589.6 million at the end of the previous fiscal year, while total shareholders’ equity increased to $660.7 million from $644.7 million.
The company continues to face challenges from inflationary pressures and foreign currency risks, which have impacted operating costs. Gentherm has implemented strategies to mitigate these cost increases but acknowledges that these measures have not fully offset the rising expenses. The automotive segment remains sensitive to changes in vehicle production levels, influenced by macroeconomic factors and geopolitical risks.
About GENTHERM Inc
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