Selected quotes from our recent earnings call. Read the corporate financials news release: Rogers Corporation Reports Fourth Quarter and Full Year 2016 Results
In Q4 2016, Rogers delivered strong net sales and margin performance to close out a very good year. The company achieved net sales of $173 million, an increase of 13.1% over Q4 2015. For the year, Rogers achieved net sales of $656.3 million for an increase of 2.3% over 2015.
Bruce Hoechner, CEO, on Innovation Leadership
Our competencies are rooted in our DNA. One of our key differentiators is the way we work with our customers to identify and develop highly engineered solutions to help with their toughest material challenges. Our R&D teams are building on a long history of innovation leadership, developing a robust product pipeline of new and next-generation solutions. In addition, we completed the acquisition of DeWAL Industries in 2016 and, in early 2017, Diversified Silicone Products, augmenting the product portfolio and technology capabilities of our EMS business.
Bruce Hoechner, CEO, on Growth Drivers
We are a market-driven organization, focusing on growing global markets including wireless infrastructure, automotive safety, and e-mobility. We view two innovation growth drivers as our key priorities: advanced mobility and advanced connectivity.
Our solutions are at the forefront of advanced mobility technologies. Our ROLINX® products provide reliable interconnects for electric vehicle inverters and batteries. Our ceramic substrates enable efficient and reliable power conversion from the battery to the drive systems in electric and hybrid-electric vehicle applications. Our PORON® urethanes and BISCO® silicones seal and protect critical battery components. And in the area of automotive safety, Rogers is the leading provider of circuit materials used in advanced driver assistance systems.
Rogers has been a leader in advanced connectivity technology since the early days of 2G wireless networks and has adapted to evolving markets through innovation. Today, we are well on our way to replicating our success with 4G LTE systems into new 4.5 and 5G generations where developments are taking place faster than expected and we are delivering new material solutions for other critical connectivity components.
Bruce Hoechner, CEO, on Rogers’ Business Units
Advanced Connectivity Solutions (ACS) has been favorably impacted by growth in high-frequency circuit materials for automotive safety, aerospace, and defense, and 4G LTE applications. Two particular indicators of growth in these areas are mobile data traffic, with a projected 45% compounded annual growth rate through 2021, and automotive safety systems, with a 29% compounded annual growth rate through 2026. We believe we have the right technologies and are developing the right products to capitalize on these opportunities.
Elastomeric Material Solutions continued its return to organic growth as a result of higher demand for portable electronics. Automotive and general industrial applications sales were slightly offset by lower demand for mass transit and certain consumer applications.
In addition to geographic expansion and investments in new product development, EMS is acquiring top-of-the-pyramid companies. DeWAL is a leading manufacturer of advanced performance polymer films and pressure-sensitive tapes that are used in industrial, aerospace, automotive, and electronics markets. Diversified Silicone Products is an innovator in custom silicone product development and manufacturing, serving a wide range of high reliability applications.
Power Electronics Solutions results were favorably impacted by increased demand in EV/HEV, variable frequency drives, and certain renewable energy applications, partially offset by lower demand in mass transit. The PES business continues to build its capabilities to serve customers in the advanced mobility category and e-Mobility applications, in particular. Rogers has a solid foothold in these applications and we are poised to capitalize on the expected market growth, which is forecast at a 28% compounded annual growth rate through 2020.
While all of our businesses are committed to operational excellence, we see significant opportunities in PES where automation and footprint changes have already led to improved results. For example, in 2016, we opened the new ROLINX power distribution busbar line at our Rogers Hungary facility.