Exhibit 99.1
Rogers Corporation Reports Record Second Quarter Sales and Earnings
``Sales increased 90%, Earnings up over 100%''
ROGERS, Conn.--(BUSINESS WIRE)--July 21, 2004--Rogers Corporation
(NYSE:ROG) announced today that diluted earnings per share for the second
quarter of 2004 were $0.68, up 113% compared to the $0.32 earned in the second
quarter of 2003. Net income increased to $11.8 million, more than double last
year's second quarter earnings of $5.2 million. As a percent of sales, net
income was 12.6% this quarter, up from 10.6% last year.
Net sales in the second quarter were $93.3 million, up 90% compared to the
$49.2 million sold in the second quarter of 2003. The Durel acquisition which
occurred in the fourth quarter of 2003, added $11.9 million to revenues this
quarter. Continuing the trend of the first quarter, all three of Rogers'
business segments experienced double-digit sales growth this quarter as compared
to the second quarter of 2003.
Sales of Printed Circuit Materials for the quarter again set a new all-time
sales record totaling $47.4 million, up 115% over the second quarter of 2003.
Flexible circuit material sales continue to be driven by the demand for high
quality interconnects used increasingly in complex end-user products, such as
high-end cell telephones. Additionally flexible circuit material sales improved
as a result of greater availability of polyimide film late in the quarter, and
supplemental capacity provided by toll manufacturing at the Company's Taiwan
joint venture. 3G cellular infrastructure and satellite television were again
the source of increased sales of high frequency circuit materials, which also
grew significantly over last year's second quarter.
High Performance Foams revenues were $21.9 million for the quarter, up 28%
from the second quarter of last year. PORON(R) urethane foam product sales
remained strong in the quarter, and were up significantly over last year's
second quarter. This period also marked an all-time quarterly sales record for
BISCO(R) silicone foam products, with industrial, transportation and computing
applications all contributing to higher sales. Polyolefin foam revenues remained
relatively flat as the Company concentrates on completing the transition to the
new facility in Carol Stream, Illinois.
Sales of Polymer Materials and Components totaled $24.0 million for the
quarter. This quarter's revenue includes sales of Durel, formerly a 50-50 joint
venture with 3M. Within this business segment, both elastomer components and
busbars achieved double-digit year-over-year increases. Durel sales experienced
a 15% year-over-year decline due to an anticipated trend away from monochrome
cell phone displays. The Company expects a continued decline for Durel in the
third quarter with improved sales in the fourth quarter driven by the ramp up of
new flexible keypad lamp programs. The move of the elastomer components business
to China is progressing as planned and should be completed by year-end.
Rogers' three 50% owned joint ventures had total sales this quarter of
$18.3 million compared to $13.0 million in the second quarter of 2003. Revenues
of Rogers Inoac Corporation (RIC) grew more than 42%, while Rogers Chang Chun
Technologies (RCCT), utilizing a greater supply of polyimide film, had sales
increase over seven times that of last year's second quarter. Polyimide Laminate
Systems (PLS), the Company's third joint venture, experienced a 40% sales
decline over last year's second quarter, as the hard disk drive industry
underwent significant inventory corrections.
Gross margin for the quarter was 33.9%, up from 30% in last year's second
quarter. The Company continues to see operational improvements as the result of
implementing Six Sigma projects and improved capacity utilization. Margins
continue to be negatively impacted by the polyolefin foam business transition to
Illinois and the elastomer components products move to China. Rogers' effective
tax rate remained at 25% this quarter.
Cash and short-term investments ended the second quarter at $33.7 million
and the Company remains debt free. Capital expenditures were $6.9 million for
the quarter and $13.5 million year-to-date.
Robert D. Wachob, President and CEO, commented, "We are pleased with the
sustained year-over-year growth in our strategic businesses this quarter. Our
top end markets, namely 3G cellular infrastructure, satellite television, and
handsets, all remain healthy and we are experiencing increased market
penetration. Our performance in the third quarter will be impacted by end of
life programs for Durel, a traditional soft third quarter in high performance
foams, the normal summer slowdown in Europe, the continuation of most of the
business transition expenses, and the cresting of consulting and audit expenses
directly related to compliance with the Sarbanes-Oxley Act. On the positive
side, we have an increased polyimide film supply, a seasonal pick up in
satellite television demand, steady 3G-infrastructure usage, and pre-production
sales of flexible electroluminescent lamps into three new keypad handset
applications. All of these factors lead us to project third quarter sales of $87
to $95 million, with earnings per diluted share of $0.59 to $0.67, which both
represent 61% increases over last year, at the midpoints."
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 2003 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 July 22nd Conference Call
For more information, please contact the Company directly, visit
Rogers' web site on the Internet, or send a message by email.
Website Address: http://www.rogerscorporation.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, Manager of Investor and Public
Relations
Phone: 860-779-5705, FAX: 860-779-5509,
email: edward.joyce@rogerscorporation.com
A conference call to discuss second quarter results will be held on
Thursday, July 22nd at 9:00AM (Eastern Time).
Rogers participants in the conference call will be:
Robert D. Wachob, President and CEO
James M. Rutledge, Vice President Finance and CFO
Robert M. Soffer, Vice President and Secretary
Paul B. Middleton, Corporate Controller
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 11:59PM, Thursday July
29th. The pass code for the audio replay is 8512903.
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.
(Financial Statements Follow)
Consolidated Statements of Income
Three Months Ended Six Months Ended
(IN THOUSANDS, EXCEPT PER July 4, June 29, July 4, June 29,
SHARE AMOUNTS) 2004 2003 2004 2003
- ---------------------------- --------- -------- --------- ---------
Net Sales $93,323 $49,159 $190,993 $101,037
Costs and Expenses:
Cost of Sales 61,657 34,433 125,941 69,823
Selling and Administrative 13,402 9,115 28,896 18,816
Research and Development 4,926 2,810 9,569 5,648
--------- -------- --------- ---------
Total Costs and Expenses(1) 79,985 46,358 164,406 94,287
--------- -------- --------- ---------
Operating Income 13,338 2,801 26,587 6,750
Other Income less Other
Charges 2,375 4,092 5,356 7,720
Interest Income/(Expense),
Net 22 56 100 131
--------- -------- --------- ---------
Income Before Taxes 15,735 6,949 32,043 14,601
Income Taxes 3,934 1,737 8,010 3,650
--------- -------- --------- ---------
Net Income $11,801 $5,212 $24,033 $10,951
--------- -------- --------- ---------
Net Income Per Share:
Basic $0.72 $0.33 $1.48 $0.70
Diluted $0.68 $0.32 $1.40 $0.68
Shares Used in Computing:
Basic 16,390 15,742 16,283 15,647
Diluted 17,247 16,305 17,110 16,162
(1) Including Depreciation and Amortization of: 2004 - $4,215 &
$9,004; 2003 - $3,635 & $7,027
Consolidated Balance Sheets
July 4, Dec 28,
(IN THOUSANDS) 2004 2003
- --------------------------------------------- ------------- ---------
Assets
Current Assets:
Cash and Cash Equivalents $25,730 $31,476
Short-term Investments 8,000 3,005
Accounts Receivable, Net 60,403 52,981
Accounts Receivable - Joint Ventures 3,312 3,178
Note Receivable, Current 2,100 2,100
Inventories 36,971 27,501
Other Current Assets 6,498 6,856
------------- ---------
Total Current Assets 143,014 127,097
------------- ---------
Notes Receivable, Long-term 6,300 7,800
Property, Plant and Equipment, Net 135,297 131,157
Investment in Unconsolidated Joint Ventures 15,812 10,741
Pension Asset 6,886 6,886
Goodwill and Other Intangible Assets, Net 28,673 25,121
Other Assets 5,874 5,638
------------- ---------
Total Assets $341,856 $314,440
------------- ---------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $19,134 $20,442
Accrued Employee Benefits and Compensation 14,254 13,359
Other Current Liabilities 16,516 16,222
------------- ---------
Total Current Liabilities 49,904 50,023
------------- ---------
Noncurrent Deferred Income Taxes 10,593 14,058
Noncurrent Pension Liability 14,522 14,909
Noncurrent Retiree Health Care & Life
Insurance Benefits 6,198 6,198
Other Long-term Liabilities 2,383 2,383
Shareholders' Equity 258,256 226,869
------------- ---------
Total Liabilities and Shareholders'
Equity $341,856 $314,440
------------- ---------
These statements are subject to year-end audit.
CONTACT: Rogers Corporation
Financial News Contact:
James M. Rutledge, 860-774-9605
or
Editorial Contact:
Edward J. Joyce, 860-779-5705
edward.joyce@rogerscorporation.com
www.rogerscorporation.com