Exhibit 99.1
Rogers Corporation Reports Record Fourth Quarter and Yearly Results
ROGERS, Conn.--(BUSINESS WIRE)--Feb. 21, 2007--Rogers Corporation
(NYSE:ROG) announced today that final GAAP earnings for the fourth quarter of
2006 were $0.72 per diluted share which compares to fourth quarter 2005 earnings
of $0.62 per share. Net sales for the quarter were $122.7 million, up 25%
compared to the $98.0 million in the fourth quarter of 2005. For the full year,
Rogers had record sales of $454.6 million, up 28% over 2005. Earnings for the
year were a record $2.69 per diluted share compared to 2005 earnings of $0.98.
Custom Electrical Components
The Custom Electrical Components segment had record quarterly sales of
$44.2 million, up 73%, over 2005. Sales into cell phone handset applications
were up considerably over last year. However, as previously announced, some new
program sales in the fourth quarter did not meet initial expectations, resulting
in a less than optimal manufacturing mix between the Company and its contract
manufacturers. The Company expects demand for its products into the cell phone
market to remain strong throughout 2007. Rogers' products are well positioned to
meet the demands for slim, elegant, superior handset designs, which were once a
consumer preference, but have now become the norm. Sales of power distribution
components were a record for the quarter, driven by Rogers' continued success in
the locomotive market. Given the continued growth in this market, the Company
continues to invest in additional capacity in its Suzhou, China campus, in
anticipation of future customer needs.
Printed Circuit Materials
Rogers' Printed Circuit Materials segment had fourth quarter sales of $41.4
million, up 5% over the fourth quarter of 2005. During the fourth quarter,
increased sales into applications such as satellite TV dishes, and high-speed
digital systems more than offset a sales decline in the communications
infrastructure and portable communications markets. The Company expects that the
current trend of expanding high-speed mobile communication installations
globally, as well as strong consumer demand for increased high definition
television channels, will provide ample opportunity for growth in 2007 and
beyond. Rogers' advanced circuit materials are used worldwide in the majority of
all "3G" or next generation cellular infrastructure systems, which provide
broadband capacity speeds to wireless subscribers. Also, newer satellites, which
are being launched to meet the growing consumer demand for more high definition
channels through direct broadcast systems, will require consumers to replace
their present systems. Rogers' circuit materials are used as part of the
satellite dish on the home, and sales into this market are expected to grow
significantly in 2007.
High Performance Foams
High performance foams revenues for the quarter were $25.5 million, up 12%
over 2005. The Company's sales of high performance foams into portable
communications and consumer products, as well as transportation applications are
what led to the increase. Rogers' superior performing foams in applications such
as sealing LCD displays and other components on cell phones, are driving
increased penetration among all handset manufacturers.
The Company is seeing increased sales and expects growing demand for
applications in the ground and air transportation markets. Rogers' foam
materials provide superior cushioning and gap sealing, as well as the ability to
meet environmental and safety requirements within the commercial aerospace
industry. In 2006, Rogers introduced new products including thinner, softer
foams, as well as foams cast on adhesive, to meet customer demands.
Other Polymer Products
Fourth quarter sales for the Other Polymer Products segment were $11.6
million, up 12% over 2005. The Company continues to evaluate its strategic
options for the businesses within this segment. Although significant progress
was made during 2006, this segment continues to be a challenge, and Rogers is
fully committed to working towards improving this segment's performance.
Joint Ventures
Quarterly sales of the Company's 50% owned joint ventures were $29.8
million, up 3% over the fourth quarter of 2005, with sales growth in circuit
materials at both Rogers Chang Chun Technologies and Polyimide Laminate Systems.
The urethane foam joint ventures with Inoac Corporation had flat
quarter-over-quarter sales. The Company expects to see growth in sales in 2007
driven by continued penetration of foam and circuit materials into the portable
communications and consumer markets.
Rogers gross margin for the full year 2006 increased to 31% from 29% for
2005. The tax rate for the year was approximately 20%. This rate is down from
previous years as the Company continues to benefit from increased profits
generated in lower foreign tax jurisdictions. The Company believes that its
annual effective tax rate in 2007 will be approximately 24%, as some foreign tax
holidays start to expire.
Rogers' balance sheet ended the year with a cash and short-term investment
position of $82 million. Capital expenditures were approximately $23 million for
the year. Rogers expects internally generated funds to cover next year's
estimated capital expenditures of $45 million.
Robert D. Wachob, President and CEO, commented, "It is a pleasure to report
all-time record sales and earnings for 2006. The strategic decisions we have
made over the last few years and the addition of new talent have positioned us
for success well into the future. Despite some normal growing pains associated
with our expansions, specifically in our China operations, the continued growth
we expect in the markets we serve today should provide sustained long-term
revenue increases in the coming years. To facilitate growing significantly above
Rogers' historical average organic rate, we have increased our activity with
respect to our New Business Development (NBD) group. One area for example, as
previously announced, revolves around thermal management of high performance
semiconductors. Our NBD efforts are focused on finding opportunities where
Rogers can create market-leading positions with defensible technology
leadership, and with growing customer demand.
We expect the first quarter of 2007 to have sales of $108 to $112 million
and profits of $0.48 to $0.52 per diluted share. Several factors are
contributing to the first quarter's expected year-over-year earnings decline.
They include: more than 100 additional salaried employees; the lack of an
inventory build as sales are not growing; a higher tax rate; and an increase in
long-term equity compensation expense. In addition, although sales are projected
to be up quarter-over-quarter, unit sales are estimated to be flat. We are
working towards significant improvement in the second quarter, and expect 2007
to be a year of record sales and profits."
Rogers Corporation, headquartered in Rogers, CT, U.S.A., develops and
manufactures high-performance specialty material based products, 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 2005 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 February 21, 2007, and Rogers undertakes no duty to update this
information unless required by law.
Additional Information and February 22nd 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 News Contact: Dennis M. Loughran, Vice President Finance and
Chief Financial Officer, Phone: 860-779-5508, FAX: 860-779-4714
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 fourth quarter and full year results will be
held on Thursday, February 22nd at 9:00AM (Eastern Time).
The Rogers participants in the conference call will be:
Robert D. Wachob, President and CEO
Dennis M. Loughran, Vice President Finance and CFO
Robert M. Soffer, Vice President, Treasurer and Secretary
Debra J. Granger, Vice President, Corporate Compliance and Control
Paul B. Middleton, Corporate Controller
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
11:59PM, Thursday March 1, 2007. The pass code for the audio replay is 9547554.
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 Year Ended
Ended
(IN THOUSANDS, EXCEPT PER SHARE Dec. 31, Jan. 1, Dec. 31, Jan. 1,
AMOUNTS) 2006 2006 2006 2006
- ----------------------------------------------------------------------
Net Sales $122,699 $97,985 $454,562 $356,112
Costs and Expenses:
Cost of Sales 88,587 66,939 311,661 252,966
Selling and Administrative 15,883 13,908 63,006 55,801
Research and Development 6,378 4,826 24,364 19,959
Impairment Charge (a) - 2,618 11,272 22,648
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Total Costs and Expenses (b) 110,848 88,291 410,303 351,374
-----------------------------------
Operating Income 11,851 9,694 44,259 4,738
Equity income in unconsolidated
JVs 2,592 3,248 8,563 5,251
Other Income/(Loss) less Other
Charges 1,539 (365) 3,156 886
Interest Income/(Expense), Net 768 355 2,353 911
-----------------------------------
Income Before Taxes 16,750 12,932 58,331 11,786
Income Taxes (Benefit) 4,077 2,681 11,875 (4,654)
-----------------------------------
Net Income $12,673 $10,251 $46,456 $16,440
-----------------------------------
Net Income Per Share:
Basic $0.75 $0.63 $2.77 $1.01
Diluted $0.72 $0.62 $2.69 $0.98
Shares Used in Computing:
Basic 16,884 16,282 16,747 16,306
Diluted 17,672 16,630 17,288 16,724
(a) Fiscal year ended 2006 results include impairment charges of
approximately $11.3 million related to the impairment of goodwill associated
with the polyolefin foam and polymer-based industrial laminate businesses.
Fiscal year ended 2005 include approximately $22.0 million of charges related to
impairment of long-lived assets associated with the polyolefin foam operation
and $0.6 million related to the impairment of certain idle equipment related to
the high frequency materials operations.
(b) Including Depreciation and Amortization of: 2006 - $5,313 & $19,529;
2005 - $2,195 & $16,853;
Consolidated Balance Sheets
- -------------------------------------------
(IN THOUSANDS) Dec. 31, 2006 Jan. 1, 2006
- ---------------------------------------------------------------------
Assets
Current Assets:
Cash and Cash Equivalents $13,638 $22,001
Short-term Investments 68,185 24,400
Accounts Receivable, Net 86,096 59,474
Accounts Receivable from Joint Ventures 5,437 5,570
Accounts Receivable, Other 3,767 3,376
Note Receivable 2,100 2,100
Inventories 70,242 43,502
Deferred Income Taxes 15,430 10,823
Asbestos-related insurance receivables 4,244 7,023
Other Current Assets 3,415 2,761
--------------------------
Total Current Assets 272,554 181,030
--------------------------
Note Receivable - 2,100
Property, Plant and Equipment, Net 141,728 131,616
Investment in Unconsolidated Joint
Ventures 26,629 20,260
Deferred Income Taxes 4,828 -
Pension Asset 974 6,667
Goodwill, Net 10,656 21,928
Other Intangible Assets, Net 454 764
Asbestos-related insurance receivables 18,503 30,581
Other Long-term Assets 4,576 5,654
--------------------------
Total Assets $480,902 $400,600
--------------------------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $25,715 $18,992
Accrued Employee Benefits and
Compensation 27,322 13,916
Accrued Income Taxes Payable 9,970 7,209
Asbestos-related insurance liabilities 4,244 7,023
Other Current Liabilities 14,892 10,226
--------------------------
Total Current Liabilities 82,143 57,366
--------------------------
Deferred Income Taxes - 6,359
Pension Liability 11,698 16,973
Retiree Health Care & Life Insurance
Benefits 10,021 7,048
Asbestos-related insurance liabilities 18,694 30,867
Other Long-term Liabilities 1,169 1,737
Shareholders' Equity 357,177 280,250
--------------------------
Total Liabilities and Shareholders'
Equity $480,902 $400,600
--------------------------
These statements are subject to year-end audit.
CONTACT: Rogers Corporation
Edward J. Joyce, 860-779-5705
Manager of Investor and Public Relations
FAX: 860-779-5509
edward.joyce@rogerscorporation.com