Rogers Corporation has announced results for the third quarter of 2014, reporting all-time record net sales of $163.1 million and net income from continuing operations of $1.09 per diluted share. Net sales and net income from continuing operations exceeded the company’s guidance provided on July 29, 2014 of $153 to $159 million in net sales and net income from continuing operations of $0.65 to $0.75 per diluted share. Third quarter 2013 net sales were $142.8 million with net income from continuing operations of $0.76 per diluted share, which included net special charges of $0.06 per diluted share.
Bruce D. Hoechner, president and CEO, commented, “We are very pleased to report that in the third quarter, we set another all-time quarterly revenue record and posted our seventh consecutive quarter of year-over-year revenue growth. All three of our business segments contributed solid results and, overall, we saw strong gains in both gross margin and operating margin resulting in excellent earnings.
"These strong results were driven by the success we achieved in a number of higher growth markets, as well as our disciplined approach to operational improvements. Specifically, in the area of margin expansion, we continue to benefit from our implementation of manufacturing process improvements, enhancements of our business systems and processes, and high value products created through our market-driven innovation efforts.”
Business Segment Discussion
Printed Circuit Materials
Printed Circuit Materials reported all-time record quarterly net sales of $63.4 million for the third quarter of 2014, an increase of 34.5% from the $47.1 million reported in the third quarter of 2013. This strong growth was driven primarily by significant demand for high frequency circuit materials to support wireless base station and antenna applications in connection with the global 4G/LTE infrastructure build-out, automotive radar applications for Advanced Driver Assistance Systems, and certain applications in portable electronic devices for improved internet connectivity.
High Performance Foams
In the third quarter of 2014, High Performance Foams reported net sales of $46.7 million, an increase of 5.1% compared to third quarter 2013 net sales of $44.5 million. Higher demand in general industrial, battery applications for hybrid electric vehicles, consumer comfort and impact protection applications offset slightly weaker demand in portable electronics (mobile Internet devices and feature phones) applications.
Power Electronics Solutions
Power Electronics Solutions reported net sales of $46.5 million for the third quarter of 2014, up 2.5% compared to third quarter 2013 net sales of $45.3 million. Results were driven by strong demand in hybrid electric vehicles, mass transit, energy efficient motor control applications and vehicle electrification (x-by-wire) applications. These increases more than offset weaker demand in laser diode and certain renewable energy applications.
Joint Ventures
Rogers’ 50% owned High Performance Foams joint ventures’ net sales totaled $12.0 million this quarter, a decrease of 26.8% compared to the $16.4 million sold in the third quarter of 2013. The decline was due to lower demand across many of their end markets.
