Exhibit 99.1
Rogers Corporation Reports 30% Increase in Earnings
for the Third Quarter of 2003;
'Results Exceed Guidance and Consensus Estimates'
ROGERS, Conn.--(BUSINESS WIRE)--Oct. 15, 2003--Rogers Corporation
(NYSE:ROG) announced today that earnings per share for the third
quarter of 2003 were up 30% compared to the third quarter of 2002 and
exceeded the guidance of the July 16th news release. Diluted earnings
per share for the quarter were $0.39 compared to the $0.30 earned in
last year's third quarter. Rogers had projected earnings of between
$0.33 and $0.37 per diluted share.
Net sales in the third quarter were $56.5 million, compared to the
$56.0 million sold in the third quarter of 2002. Revenues of the
Moldable Composites Division (MCD), divested in November of 2002, were
$8.5 million in last year's third quarter. Compared to this year's
second quarter, net sales increased 15% and were $3.5 million higher
than the Company's guidance of $50 to $53 million.
Rogers' four unconsolidated joint ventures had total revenues in
the third quarter of $29.8 million versus $33.9 million in the same
quarter last year. Adding the Company's 50% share of these joint
venture sales to the Company's net sales, Rogers' Combined Sales this
quarter were $71.4 million compared to $73.0 million in last year's
third quarter. (See reconciliation for Combined Sales to net sales
under Non-GAAP information included at the end of this press release.)
Sales of Printed Circuit Materials for the quarter reached record
levels totaling $30.0 million, up 41% from the $21.3 million reported
in the third quarter of 2002. Revenue increases were driven by
seasonally strong sales of high frequency laminates into the satellite
television market, as well as accelerating wireless infrastructure
sales as more 3G base stations are built. This quarter also saw a
dramatic 70% rise in flexible circuit laminate revenues as new
cellular phone programs ramped into full production. This success is
the result of continuing design wins at OEM's and strong fabricator
support as they are finding improved yields using Rogers' flexible
circuit laminates.
Third quarter sales of High Performance Foams were $17.3 million,
up almost 8% from the third quarter last year. Sales of industrial
high performance foams into the cellular telephone, automotive and
wireless infrastructure markets all improved in September. Profits for
this segment of the Company's operations continue to be negatively
affected by duplicate staffing and other operating expenses, as the
result of the move to Illinois from New York, of the previously
acquired polyolefin business. The Company expects to see some relief
from this transition beginning in the second quarter of next year.
Sales of Polymer Materials and Components totaled $9.2 million for
the quarter, down from the $18.7 million in last year's third quarter,
mostly as a result of the Company's divestiture of MCD. The Company's
bus bar and non-woven businesses were up significantly this quarter
however, revenues from the Elastomer Components Division, that
produces rollers used in various office equipment and other devices,
continued to decline. Going forward, revenues for this portion of
Rogers' business will increase significantly as sales from the recent
Durel acquisition will be included in net sales as part of this
segment.
All of Rogers' joint ventures had operating profits in the
quarter. Total revenues from the joint ventures were down 12%
year-over-year, but up 10% sequentially. Rogers Inoac Corporation
(RIC) and Rogers Chang Chun Technologies (RCCT) both recorded the
highest quarterly sales in their history. Durel sales were down
year-over-year for the quarter, however up 18% sequentially. At both
Durel and RIC, sales were primarily driven by the seasonal strength of
the cell phone business. RCCT made very substantial progress as design
wins reported last quarter resulted in a significant increase in
shipments. Polyimide Laminate Systems sales were down due to loss of
market share.
As previously announced, Rogers acquired 3M's 50% share in its
Durel joint venture, a manufacturer of electroluminescent backlights,
on September 30, 2003. The Company anticipates this will substantially
add to net sales and increase earnings per share by approximately
$0.05 in the fourth quarter.
Gross margins increased to 33% compared to 31% for last year's
third quarter and 30% for the second quarter of this year. Improved
gross margins were triggered by the operating leverage resulting from
higher sales. Net income as a percentage of sales jumped to 11.2% this
quarter, from 8.5% in the third quarter of last year.
Capital expenditures were $3.1 million for the third quarter. Due
to underestimated lead times for machines and equipment the Company
expects total capital spending for the year will be approximately $17
to $20 million instead of the $25 million previously estimated.
Rogers' balance sheet remains in excellent condition. The Company
continues to be debt free. Due to strong cash flow, Rogers' cash
balance increased to $35 million. The Durel acquisition will cause an
$18 million reduction in cash in the fourth quarter. Accounts
receivables days of sales outstanding were reduced from 55 days to 53
days during the third quarter.
Walter E. Boomer, Chairman and CEO stated, "I am very pleased with
our progress year to date and the fact that our earnings are up 30%
for the year. That is really how Rogers looks at things -
year-to-year, not quarter-to-quarter. It is our long range focus that
has brought us to this point. That and the determination to pay
attention to the fundamentals of good business and to achieve the
goals we set for ourselves. We are optimistic looking forward and
anticipate continued strength, particularly in printed circuit
materials. We also expect other parts of our business to accelerate as
we gain market share and the economy continues to improve. Our
guidance for the fourth quarter, including the impact of the Durel
acquisition, is for net sales between $71 and $75 million, with
earnings per diluted share of between $0.45 and $0.49. Even at the low
end of the guidance that's an improvement of 39% in revenue and 32% in
earnings per share as compared to last year."
Safe Harbor Statement
Statements in this news release that are not strictly historical
may be deemed to be "forward-looking" statements which should be
considered as subject to the many uncertainties that exist in the
Company's operations and environment. These uncertainties, which
include economic conditions, market demand and pricing, competitive
and cost factors, rapid technological change, new product
introductions, legal proceedings, and the like, are incorporated by
reference in the Rogers Corporation 2002 Form 10-K filed with the
Securities and Exchange Commission. Such factors could cause actual
results to differ materially from those in the forward-looking
statements.
Additional Information and October 16th Conference Call
For more information, please contact the Company directly, visit
Rogers website on the Internet, or send a message by email.
Website Address: http://www.rogerscorporation.com
Financial E-mail: finfo@rogers-corp.com
Financial News Contact: James M. Rutledge, Vice President Finance
and Chief Financial Officer, Phone: 860-774-9605, FAX: 860-779-5585
Editorial Contact: Edward J. Joyce, Phone: 860-779-5705, FAX:
860-779-5509, email: edward.joyce@rogerscorporation.com
A conference call to discuss third quarter results will be held on
Thursday, October 16th at 9:00AM (Eastern Time).
Rogers participants in the conference call will be:
Walter E. Boomer, Chairman of the Board and CEO
Robert D. Wachob, President and COO
James M. Rutledge, Vice President Finance and CFO
Robert M. Soffer, Vice President and Secretary
A Q&A session will immediately follow management's comments.
To participate in the conference call, please call: 1-800-574-8929
toll-free in the United States and 1-706-634-1907 internationally.
There is no passcode for the live teleconference. For playback access,
please call: 1-800-642-1687 in the United States and 1-706-645-9291
internationally through 11:00PM, Thursday October 23rd. The passcode
for the audio replay is 3017614.
The call will also be webcast live in a listen only mode. The
webcast may be accessed through links available on the Rogers
Corporation website at www.rogerscorporation.com. Replay of the
archived webcast will be available on the Rogers website beginning two
hours following the webcast.
Presentation of Information in this Press Release
In an effort to provide investors with additional information
regarding the Company's results, the Company may disclose certain
Non-GAAP information which management believes provides useful
information to investors. Management sometimes refers to "Combined
Sales" which are defined as net sales (as reported under GAAP) plus
50% of the revenues from the Company's four unconsolidated joint
ventures. These unconsolidated joint ventures are viewed by management
as important to the Company's business and make a significant
contribution towards the Company's profits.
Reconciliation of Non-GAAP Financial Information
(Dollars in Thousands) Third Quarter
2003 2002
Net Sales, as reported in this report and in $ 56.5 $ 56.0
accordance with generally accepted
accounting principles
50% of Rogers' Joint Venture Sales 14.9 17.0
Combined Sales $ 71.4 $ 73.0
Consolidated Statements of Income (Unaudited)
Quarters Ended Nine Months Ended
(IN THOUSANDS, EXCEPT PER Sept 28, Sept 29, Sept 28, Sept 29,
SHARE AMOUNTS) 2003 2002 2003 2002
Net Sales $56,497 $56,034 $157,534 $167,922
Costs and Expenses:
Cost of Sales 37,791 38,571 107,614 116,520
Selling and
Administrative 10,269 9,568 29,085 29,776
Research and Development 3,484 3,417 9,132 10,522
Total Costs and Expenses
(Including Depreciation
and Amortization of:
2003 - $9,645; 2002 -
$11,033)(A) 51,544 51,556 145,831 156,818
Operating Income 4,953 4,478 11,703 11,104
Other Income less Other
Charges 3,438 2,435 11,158 7,215
Interest Income/
(Expense), Net 48 (71) 179 (257)
Income Before Income Taxes 8,439 6,842 23,040 18,062
Income Taxes 2,110 2,072 5,760 4,877
Net Income $6,329 $4,770 $17,280 $13,185
Net Income Per Share:
Basic $0.40 $0.31 $1.10 $0.85
Diluted $0.39 $0.30 $1.07 $0.82
Shares Used in Computing:
Basic 15,897 15,516 15,712 15,460
Diluted 16,325 15,896 16,214 16,003
(A) For the nine month periods.
Consolidated Balance Sheets (Unaudited)
(IN THOUSANDS) Sept. 28, December 29,
2003 2002
Assets
Current Assets:
Cash and Cash Equivalents $35,273 $22,300
Short -term Investments -- 6,628
Accounts Receivable, Net 43,480 32,959
Accounts Receivable - Joint Ventures 1,385 1,414
Note Receivable, Current 2,100 --
Inventories 18,135 18,069
Other Current Assets 6,648 6,305
Total Current Assets 107,021 87,675
Notes Receivable, Long Term 9,900 12,000
Property, Plant and Equipment, Net 104,479 99,883
Investment in Unconsolidated Joint Ventures 23,145 21,860
Pension Asset 8,951 8,951
Goodwill and Other Intangible Assets, Net 22,204 22,204
Other Assets 5,394 5,128
Total Assets $281,094 $257,701
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $10,484 $10,125
Accrued Employee Benefits and Compensation 11,516 10,414
Other Current Liabilities 18,500 14,241
Total Current Liabilities 40,500 34,780
Noncurrent Deferred Income Taxes 8,868 8,308
Noncurrent Pension Liability 17,124 22,658
Noncurrent Retiree Health Care and Life
Insurance Benefits 6,197 6,197
Other Long-Term Liabilities 2,202 2,720
Shareholders' Equity 206,203 183,038
Total Liabilities and Shareholders'
Equity $281,094 $257,701
CONTACT: Rogers Corporation
Edward Joyce, 860-779-5705
edward.joyce@rogerscorporation.com