From the CEO: Rogers Corp Announces Q1 2017 Financials

Selected quotes from our recent earnings call. Read the corporate financials news release: Rogers Corporation Reports First Quarter 2017 Results

In Q1 2017, Rogers achieved all time record quarterly net sales and earnings. Our sales were $204 million, an increase of 27% over Q1 2016. Results were driven by organic sales with solid growth in each of our business units, as well as exceptional performance in our recently acquired businesses. This is confirmation that we have implemented a winning strategy and our solid execution is taking Rogers to a new level of performance.

Bruce Hoechner, CEO, on Innovation Leadership

We are confident that our technology portfolio, marketing initiatives, and new product pipeline are well aligned with the growth drivers of Advanced Connectivity and Advanced Mobility where our solutions are proven, innovation is valued, and the growth outlook is compelling.

Bruce Hoechner, CEO, on Growth Drivers

As a market-driven organization, we are focused on select markets that are far outpacing global GDP growth, for example, Advanced Driver Assistance Systems (ADAS) and the Internet of Things. We are well positioned to take full advantage of these significant opportunities as the markets grow.

Rogers’ innovation expertise is enabling us to develop a new product platform to meet the most challenging segment of the Wired Internet infrastructure market. Our extremely low loss material is in various stages of customer qualification at key network infrastructure OEMs. Customer testing and feedback indicate that our material enables a performance level previously thought unachievable on copper clad laminate systems.

Our operational excellence initiatives are helping us improve profitability in four key areas: footprint rationalization, process improvement, optimizing cost structure, and back office utilization. We have refined our growth strategy by business unit to enable ACS, EMS, and PES to capitalize on their individual market opportunities and capabilities to accelerate growth.

Bruce Hoechner, CEO, on Rogers’ Business Units

Advanced Connectivity Solutions (ACS) achieved all time record revenue growth in Q1 2017, driven by continued strong demand in ADAS, as well as in aerospace and defense. Rogers has achieved several substantial 4.5G design wins as telecom equipment OEMs and telecom service providers move to the next level of system performance. We are very encouraged by the acceleration in the development of the 5G technologies. Other promising opportunities include automotive OEMs that are offering more models with ADAS features and fast tracking their plans to introduce cars with autonomous capabilities, both of which utilize Rogers Technologies. Overall, we continue to broaden the ACS portfolio of wireless infrastructure, wired infrastructure, advanced mobility, and aerospace and defense solutions to meet unsolved needs in the market.

In Elastomeric Material Solutions (EMS), demand across all of our product lines contributed to organic growth in the portable electronics, general industrial, automotive, and mass transit segments. Significant contributions from our acquired DeWAL and DSP businesses helped EMS achieve all time record quarterly net sales. As we look ahead, we expect to see continued penetration in the back pad solution for portable electronics, as well as in high performance gasketing for automotive applications.

Power Electronics Solutions (PES) net sales during the quarter increased due to broad based demand in many key markets, including renewable energy, hybrid electric vehicles, variable frequency motor drives, rail, and laser diode cooling products. Government mandates and consumer demand continue to drive adoption of eMobility applications, particularly in electric and hybrid electric vehicles. We expect to see continued growth, particularly in clean energy applications such as variable frequency drives, renewable energy, and advanced mobility.

Q1 2017 Earnings Call Full Transcript

Q1 2017 Financials Press Release

Q1 2017 Earnings Call Slides

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