Rogers Reports Second Quarter 2021 Results

Reading time ( words)

Rogers Corporation announced financial results for the second quarter of 2021.

“Rogers achieved continued sales improvement in the second quarter driven by growth in EV/HEV, clean energy and other strategic markets,” stated Bruce D. Hoechner, Rogers' President and CEO. “Global supply chain challenges impacted our second quarter results more than anticipated and margins and earnings were below our prior guidance expectations. We are addressing these recent challenges as we continue to navigate this dynamic environment. We are executing on our market strategy and the outlook for Advanced Mobility remains robust, led by the accelerating transition to electric and hybrid electric vehicles. We continue to significantly increase our investments in new capacity and capabilities to capitalize on the growth opportunities across our market portfolio.” 

Q2 2021 Summary of Results

Net sales of $234.9 million increased 2.5% versus the prior quarter from higher sales in the AES business unit. AES net sales increased primarily due to strong demand for EV/HEV applications and higher clean energy, defense and wireless infrastructure market sales, partially offset by a decline in sales for ADAS applications. Demand remained strong in the EMS business, but net sales decreased compared to the prior quarter primarily due to lower production levels from supply constraints and the previously announced disruption to the Company's manufacturing facility in South Korea. The lower production levels contributed to the decline in portable electronics market sales, and tempered growth in industrial market sales. EV/HEV sales declined slightly, compared to strong first quarter sales. Currency exchange rates unfavorably impacted total company net sales in the second quarter of 2021 by $0.8 million compared to prior quarter net sales.

Gross margin was 38.2%, compared to 39.0% in the prior quarter. The decrease in gross margin was primarily due to the impact of supply constraints, raw material price increases and unfavorable product mix, partially offset by higher volumes.

Selling, general and administrative (SG&A) expenses increased by $2.5 million from the prior quarter to $45.0 million. The increase in SG&A expense was due to higher performance based compensation costs and reinvestment initiatives.

GAAP operating margin of 15.2% decreased by 100 basis points from the prior quarter primarily due to lower gross margin and higher SG&A expenses, partially offset by lower restructuring charges. Adjusted operating margin of 17.4% decreased by 160 basis points versus the prior quarter.

GAAP earnings per diluted share were $1.52, compared to earnings per diluted share of $1.66 in the previous quarter. The decrease in GAAP earnings primarily resulted from lower operating income and other income, partially offset by lower tax expense. On an adjusted basis, earnings were $1.72 per diluted share compared to adjusted earnings of $1.92 per diluted share in the prior quarter.

Ending cash and cash equivalents were $203.9 million, an increase of $4.8 million versus the prior quarter. The Company generated free cash flow of approximately $11.9 million in the second quarter of 2021. Net cash provided by operating activities of $29.7 million was offset by $4.0 million of principal payments made on the remaining outstanding borrowings under the Company’s revolving credit facility and capital expenditures of $17.8 million.



Suggested Items

Joe Fjelstad's Book Review: The Innovators

02/08/2021 | Joe Fjelstad, Verdant Electronics
"The Innovators: How a Group of Hackers, Geniuses, and Geeks Created the Digital Revolution" by Walter Isaacson is the best technology history book I have ever read, and at the same time one of the most engaging and entertaining. It is a forte of Isaacson to write biographies of great people. I have read his other books on DaVinci, Steve Jobs, Ben Franklin and Albert Einstein and found them equally brilliant. Isaacson has a number of other titles I have yet to get to in the future. He is a singularly great storyteller.

Book Excerpt: ‘Thermal Management: A Fabricator's Perspective,' Chapter 3

01/26/2021 | Anaya Vardya, American Standard Circuits
Conceptually, a metal-core board is exactly like it sounds—the metal is in the middle of the PCB sandwiched between layers on both sides. Just about any PCBA that will contain active heat-generating components can benefit when designed on a metal-core PCB. On a conventional PCB, the standard FR-4 layers are relatively poor thermal conductors, and heat is normally dissipated from active components using vias and thermal pads, as discussed earlier.

HKPCA’s Audrey Sim Details Upcoming Electronic Circuits World Convention

11/18/2020 | Nolan Johnson, I-Connect007
Nolan Johnson speaks with Audrey Sim, executive director and vice president of operations for the Hong Kong Printed Circuit Association, about the upcoming Electronic Circuits World Convention, to be held November 30 through December 2, 2020. Ms. Sim gives Nolan an overview of the conference’s history, its scope as a printed circuit industry conference, and its shift to a hybrid virtual/physical format for 2020.

Copyright © 2022 I-Connect007. All rights reserved.