Exhibit 99.1
Rogers Corporation Reports First Quarter Results
ROGERS, Conn.--(BUSINESS WIRE)--April 21, 2005--Rogers Corporation
(NYSE:ROG) announced today that for the fiscal first quarter of 2005,
earnings per diluted share were $0.30, compared to the $0.72 earned in
the first quarter of 2004. The Company's first quarter guidance was
earnings of $0.28 to $0.32 per diluted share. Net income for the
quarter was $5.1 million.
Net sales in the first quarter were $86.5 million, compared to the
$97.7 million sold in the first quarter of 2004. The Company had
provided a first quarter guidance range for net sales of $85 to $89
million.
Printed Circuit Materials segment sales totaled $39.7 million,
down 12% from the first quarter of 2004, when customers were building
significant inventory. This business segment's operating profit was
$3.8 million, compared to $8.5 million a year ago. Flexible laminate
circuit material sales were significantly lower due to major cell
phone programs reaching end of life. The Company expects its
customers' new programs to ramp up late in the second and into the
third quarter. High frequency circuit material sales, driven by
resumed cellular infrastructure orders, increased significantly over
the fourth quarter and satellite TV market sales remained strong
throughout the quarter.
First quarter sales of High Performance Foams were $23.4 million,
up 6% from the first quarter of last year, and just below last
quarter's all-time record. Operating income for the segment was $1.3
million in the quarter, up from $0.7 million a year ago. Foam sales
were driven by PORON(R) polyurethane materials, with strong results in
industrial applications and consumer markets. BISCO(R) silicone foam
sales were also up slightly over last year, while polyolefin foam
sales were down as the Company continued to eliminate unprofitable
business. At the Carol Stream, IL facility, Rogers has made progress
in its polyolefin operations and reduced the loss from last year
despite reduced sales.
Sales of Polymer Materials and Components totaled $23.5 million
for the quarter, compared to last year's first quarter sales of $30.5
million. The expected decline in Durel sales accounted for almost all
of this business segment's decrease. However, demand for Rogers' new
DFLX(TM) flexible electroluminescent lamp (EL), used in keypad
applications, is exceeding expectations. The Company is currently
adding EL capacity worldwide, and expects to have two to three times
the current capacity for lamp production in place by the end of the
first quarter of 2006. Sales of the Company's elastomer components
were down from a year ago, when customers were building inventory in
preparation for the business transition to China. Operational
improvements continue at the new facility in China, and by the end of
April, the Company expects to have sold the majority of the U.S.
elastomer components product inventory built in anticipation of the
business transition. Rogers' first busbar shipments from the new China
operation were made at the end of the quarter. All indications are
that this incremental business will grow rapidly, as the Company can
now satisfy the requirements of Asian customers for local
manufacturing. Rogers expects this new busbar operation to be
profitable by the end of the year.
Rogers' 50% owned joint ventures had quarterly sales of $23.9
million, an increase of 32% year-over-year. Rogers Chang Chun
Technologies (RCCT) flexible laminate circuit material sales increased
44% year-over-year. The Company's two polyurethane foam joint ventures
with Inoac Corporation also had significant sales growth, with a
combined increase of 51% over last year. Additionally, as expected,
the new polyurethane foam joint venture operation in China turned
profitable in the quarter. Polyimide Laminate Systems (PLS) revenues
declined due to lower market share for the joint venture's existing
products. Looking forward, PLS expects sales to grow as the
introduction of their new products was very favorably received.
First quarter gross margin was 27.0%, down from 34.2% a year ago,
when the Company had significantly less production capacity and higher
sales. The corporate tax rate for the first quarter was 24%, which
reflects the beginning of benefit from increased activity in
jurisdictions with lower tax rates.
The Company generated $6.8 million in operating cash flow, which
exceeded this quarter's capital expenditures of $4.2 million. The
Company's cash and short-term investments increased by $0.7 million
after repurchasing $7.0 million of the Company's common stock in the
quarter under its stock repurchase program. As anticipated, Rogers
made significant progress improving its balance sheet during the
quarter, reducing inventories by $4.1 million; accounts receivable by
$4.0 million; and decreasing accounts payable liabilities by $6.0
million. The Company continues to be debt free, and capital
expenditures continue to be funded from operations.
Robert D. Wachob, President and CEO, commented, "Both sales and
profits for the quarter were in line with our expectations. Although
lower than we would like, this quarter's profit was affected by
significant product mix changes, continued process improvement
expenses, the new operations both in the U.S. and China, and also
under-utilized new capacity in certain product lines. Despite the
unfavorable comparison to the first quarter of 2004, when we had
considerably more operating leverage, we are very pleased with our
progress this quarter. In particular, I am very pleased with the
success and market demand for Durel's flexible keypad lamp, the steady
product sales and operational improvements in our new and relocated
facilities, and the progress in reducing our inventories. We look
forward to making continued improvement throughout the year and expect
second quarter net sales to be in the range of $89 to $93 million, and
profits between $0.40 to $0.44 per diluted share."
Rogers Corporation, headquartered in Rogers, CT, U.S.A., develops
and manufactures high-performance specialty materials, which serve a
diverse range of markets including: portable communication devices,
communication infrastructure, consumer products, computer and office
equipment, ground transportation, and aerospace and defense. Rogers
operates manufacturing facilities in Connecticut, Arizona, and
Illinois in the U.S., in Gent, Belgium, in Suzhou, China, and in
Hwasung City, Korea. Sales offices are located in Belgium, Japan,
Taiwan, Korea, China, and Singapore.
Safe Harbor Statement
Statements in this news release that are not strictly historical
may be deemed to be "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's current
expectations and are 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 2004 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. All information in this press release is as of April 21,
2005, and Rogers undertakes no duty to update this information unless
required by law.
Additional Information and April 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: Paul B. Middleton, Acting Chief Financial
Officer and Corporate Controller, Phone: 860-774-9605, FAX:
860-779-4714
Editorial Contact: Edward J. Joyce, Manager of Investor and Public
Relations, Phone: 860-779-5705, FAX: 860-779-5509, e-mail:
edward.joyce@rogerscorporation.com
A conference call to discuss first quarter results will be held on
Friday, April 22nd at 9:00 a.m. (Eastern Time).
The Rogers participants in the conference call will be:
Robert D. Wachob, President and CEO
Paul B. Middleton, Acting CFO and Corporate Controller
Robert M. Soffer, Vice President, Treasurer and Secretary
Debra J. Granger, Director, Corporate Compliance and Control
Edward J. Joyce, Manager of Investor and Public Relations
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 11:59 p.m. (Eastern Time), Friday April 29th.
The pass code for the audio replay is 5542856.
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 Web site beginning
two hours following the webcast.
Quarters Ended
(In thousands, except per share amounts) April 3, April 4,
2005 2004
- ------------------------------------------------ ----------- ---------
Net Sales $86,545 $97,670
Costs and Expenses:
Cost of Sales 63,141 64,285
Selling and Administrative 14,400 14,895
Research and Development 5,060 4,641
----------- ---------
Total Costs and Expenses (Including Depreciation
and Amortization of: 2005 - $5,279; 2004 -
$4,658) 82,601 83,821
----------- ---------
Operating Income 3,944 13,849
Other Income less Other Charges 2,573 2,381
Interest Income/ (Expense), Net 228 78
----------- ---------
Income Before Income Taxes 6,745 16,308
Income Tax (Benefit) Expense 1,620 4,077
----------- ---------
Net Income $5,125 $12,231
----------- ---------
Net Income Per Share:
Basic $0.31 $0.76
----------- ---------
Diluted $0.30 $0.72
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Shares Used in Computing:
Basic 16,404 16,177
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Diluted 16,879 16,973
----------- ---------
Consolidated Balance Sheets
(In thousands) April 3, Jan 2,
2005 2005
- ----------------------------------------------- ----------- ----------
Assets
Current Assets:
Cash and Cash Equivalents $40,707 $37,967
Short-term Investments -- 2,000
Accounts Receivable, Net 53,735 57,264
Accounts Receivable - Joint Ventures 4,719 5,176
Note Receivable, Current 2,100 2,100
Inventories 44,930 49,051
Asbestos-related insurance receivables 7,154 7,154
Other Current Assets 12,130 12,222
----------- ----------
Total Current Assets 165,475 172,934
----------- ----------
Notes Receivable, Long Term 4,200 4,200
Property, Plant and Equipment, Net 137,894 140,384
Investment in Unconsolidated Joint Ventures 17,749 18,671
Pension Asset 5,831 5,831
Goodwill and Other Intangible Assets, Net 28,946 29,072
Asbestos-related insurance receivables 28,803 28,803
Other Assets 5,247 5,300
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Total Assets $394,145 $405,195
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Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $15,107 $21,117
Accrued Employee Benefits and Compensation 13,293 18,427
Asbestos-related insurance liabilities 7,154 7,154
Other Current Liabilities 13,605 10,689
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Total Current Liabilities 49,159 57,387
----------- ----------
Deferred Income Taxes 13,808 14,111
Pension Liability 14,763 14,757
Retiree Health Care and Life Insurance
Benefits 6,483 6,483
Asbestos-related insurance liabilities 29,045 29,045
Other Long-Term Liabilities 1,872 2,045
Shareholders' Equity 279,015 281,367
----------- ----------
Total Liabilities and Shareholders' Equity $394,145 $405,195
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CONTACT: Rogers Corporation
Edward J. Joyce, 860-779-5705
edward.joyce@rogerscorporation.com