EXHIBIT 99.1
Rogers Corporation Reports Record Third Quarter Sales and Net Income
ROGERS, Conn.--(BUSINESS WIRE)--Oct. 20, 2004--Rogers Corporation
(NYSE:ROG) today announced results for the third quarter of 2004.
Diluted earnings per share for the third quarter were $0.38, compared
to $0.39 in last year's third quarter. The Company's updated third
quarter guidance of September 20, 2004 was earnings of $0.36 to $0.40
per diluted share. Net income for the quarter increased to $6.5
million compared to $6.3 million for the same quarter last year.
Net sales of $86.7 million are up 53% compared to the $56.5
million sold in the third quarter of 2003, and in line with previously
announced updated sales guidance of $86 to $88 million. The Durel
Division, acquired in the fourth quarter of 2003, contributed $10.4
million to sales this quarter. Excluding Durel sales, all three of
Rogers' business segments still experienced double-digit sales growth
compared to the third quarter of 2003.
Sales of Printed Circuit Materials set a third quarter record of
$45.2 million, up 51% over the third quarter of 2003. While wireless
infrastructure spending and the satellite TV market were softer than
forecasted, they continue to contribute to the sales growth of high
frequency circuit materials. Flexible circuit materials sales
experienced increased demand for high quality laminates in our end
markets, especially wireless handsets, and had a record quarter with
more than a 100% sales increase over the same quarter in 2003. As
previously announced, profitability within Printed Circuit Materials
was significantly affected by lower efficiencies associated with the
ramping up of new grades of flexible circuit laminate raw materials,
and a quality issue, resolved within the quarter, with the Company's
high frequency products.
High Performance Foams revenues were $20.7 million for the
quarter, up 20% from the third quarter of last year. PORON(R) urethane
foams and BISCO(R) silicone foam products sales remained strong and
were both up significantly over the same quarter last year. Both were
driven by continued demand for Rogers' high performance foam products
into a wide variety of industrial, consumer and electronic
applications. Polyolefin foams sales remained relatively flat and
losses peaked this quarter as the Company completed the transfer of
operations to the new facility in Carol Stream, Illinois, where
significant costs associated with product qualification trials were
incurred.
Sales of Polymer Materials and Components totaled $20.7 million
for the quarter, which includes $10.4 million of Durel sales, formerly
a 50-50 joint venture with 3M. Within this business segment, both the
busbar business and the Elastomer Components Division (ECD) had
double-digit year-over-year sales growth for the quarter. Durel sales,
though down considerably compared to last year, were better than
forecasted for the quarter. As previously announced, low yields
associated with flexible lamp production startup, and lower volume
caused a loss at Durel versus a substantial profit last year.
Rogers' three 50% owned joint ventures had total sales this
quarter of almost $24 million compared to $13.2 million in the third
quarter of 2003. Rogers Chang Chun Technologies (RCCT) led the sales
growth with flexible circuit material products in cell telephones and
flat screen displays, growing by more than 500% over the third quarter
of 2003. Rogers Inoac Corporation (RIC) also had a strong sales
increase for urethane foam products with a quarterly year-over-year
increase of almost 58%. Currently the Company's smallest joint
venture, Polyimide Laminate Systems (PLS) had an 11% sales decline
this quarter compared to last year's third quarter due to lower market
share. Rogers expects that PLS will be able to regain market share
with the upcoming introduction of an improved product.
Gross margin for the quarter was 28%, which is below last year's
third quarter gross margin of 33%. As announced in the September 20,
2004 news release, profit margins were negatively impacted this
quarter by several factors, namely business transition expenses
associated with the Suzhou, China and Carol Stream, Illinois moves,
low yields from the production startups at both Carol Stream and
Durel, and an isolated quality issue in high frequency materials.
Rogers' effective tax rate remained at 25% this quarter.
Cash and short-term investments ended the third quarter at $29.0
million and the Company remains debt free. Capital expenditures were
$6.4 million for the quarter and about $20 million year-to-date.
Rogers expects capital spending to be approximately $6 million in the
fourth quarter.
Robert D. Wachob, President and CEO, commented, "We are clearly
headed for a record year in sales and profits. Throughout this year we
have focused our energy on completing a significant number of complex
objectives. We completed the transition of polyolefin foams to Carol
Stream, Illinois in September. Next at Carol Stream we will work on
yields and throughput. Also, by the end of the year, the move of the
Elastomer Components Division to China will be completed; we will have
added two high frequency material presses in Belgium; our RIC joint
venture will have started up a new PORON urethane foam machine in
China; and our RCCT joint venture will have brought on stream its
second flexible circuit materials machine. We expect to largely
complete these long-standing strategic programs in the fourth quarter.
Additionally we have reduced expenses in the last month. For example,
in Europe, our printed circuit materials facility is operating on a
revolving furlough schedule; we eliminated most overtime in the U.S.
at our high frequency circuit material facility; and both Durel and
ECD have had reductions in force. Much of our positioning for the
future will be completed during the fourth quarter and our expense
levels will be reduced placing us in a strong position to continue to
grow Rogers in 2005. We are maintaining or gaining market share in all
our markets. Our expectation for the fourth quarter are sales of $82
to $87 million, with earnings per diluted share of $0.40 to $0.45."
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 October 21st 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 third quarter results will be held on
Thursday, October 21st 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 October 28th. The pass code
for the audio replay is 1380311.
The call will also be webcast live in a listen-only mode. The
webcast may be accessed through links available on the Rogers
Corporation Web site 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 Nine Months Ended
(IN THOUSANDS, EXCEPT PER October September October September
SHARE AMOUNTS) 3, 28, 3, 28,
2004 2003 2004 2003
- ----------------------------------------------------------------------
Net Sales $86,740 $56,497 $277,733 $157,534
Costs and Expenses:
Cost of Sales 62,430 37,791 188,372 107,614
Selling and
Administrative 13,447 10,269 42,343 29,085
Research and Development 5,412 3,484 14,979 9,132
--------------------------------------------
Total Costs and
Expenses(a) 81,289 51,544 245,694 145,831
--------------------------------------------
Operating Income 5,451 4,953 32,039 11,703
Other Income less Other
Charges 3,132 3,438 8,487 11,158
Interest
Income/(Expense), Net 31 48 131 179
--------------------------------------------
Income Before Taxes 8,614 8,439 40,657 23,040
Income Taxes 2,153 2,110 10,164 5,760
--------------------------------------------
Net Income $6,461 $6,329 $30,493 $17,280
--------------------------------------------
Net Income Per Share:
Basic $0.39 $0.40 $1.87 $1.10
Diluted $0.38 $0.39 $1.78 $1.07
Shares Used in Computing:
Basic 16,460 15,897 16,342 15,712
Diluted 17,140 16,325 17,120 16,214
(a) Including Depreciation and Amortization of: 2004 - $4,222 &
$13,226; 2003 - $2,618 & $9,645
Consolidated Balance Sheets
(IN THOUSANDS) Oct 3, 2004 Dec 28, 2003
- ----------------------------------------------------------------------
Assets
Current Assets:
Cash and Cash Equivalents $27,021 $31,476
Short-term Investments 2,000 3,005
Accounts Receivable, Net 58,959 52,981
Accounts Receivable - Joint Ventures 5,492 3,178
Note Receivable, Current 2,100 2,100
Inventories 42,758 27,501
Other Current Assets 7,526 6,856
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Total Current Assets 145,856 127,097
------------------------
Notes Receivable, Long-term 6,300 7,800
Property, Plant and Equipment, Net 137,582 131,157
Investment in Unconsolidated Joint Ventures 17,974 10,741
Pension Asset 6,886 6,886
Goodwill and Other Intangible Assets, Net 28,567 25,121
Other Assets 6,069 5,638
------------------------
Total Assets $349,234 $314,440
------------------------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $18,864 $20,442
Accrued Employee Benefits and Compensation 16,977 13,359
Other Current Liabilities 17,458 16,222
------------------------
Total Current Liabilities 53,299 50,023
------------------------
Noncurrent Deferred Income Taxes 10,663 14,058
Noncurrent Pension Liability 11,229 14,909
Noncurrent Retiree Health Care & Life
Insurance Benefits 6,198 6,198
Other Long-term Liabilities 2,482 2,383
Shareholders' Equity 265,363 226,869
------------------------
Total Liabilities and Shareholders'
Equity $349,234 $314,440
------------------------
These statements are subject to year-end audit.
CONTACT: Rogers Corporation
Edward J. Joyce, 860-779-5705
Manager of Investor and Public Relations
edward.joyce@rogerscorporation.com