Exhibit 99.1
Rogers Corporation Reports First Quarter Results
ROGERS, Conn.--(BUSINESS WIRE)--May 2, 2007--Rogers Corporation (NYSE:ROG)
today announced record first quarter sales of $115.8 million, up 12% compared to
the $103 million sold in the first quarter of 2006 and above the Company's
February 21, 2007, guidance of $108 to $112 million. Diluted earnings per share
for the first quarter of 2007 were $0.54 above the Company's February 21, 2007
guidance of $0.48 to $0.52. Net income for the quarter was $9.5 million,
compared to $12.6 million a year ago. Equity-based incentive compensation
expense was $2.6 million this quarter and $0.5 million in the first quarter of
2006.
Custom Electrical Components
Sales of Custom Electrical Components were $39.3 million for the quarter,
up 36% compared to last year's first quarter sales of $28.8 million. The sales
increase was primarily driven by portable communication applications and higher
demand in the locomotive market. The Company previously added capacity for power
distribution components at its Suzhou, China campus, in anticipation of an
increased demand in the locomotive market. Sales into the portable
communications market, although up over 30% year-over-year, were negatively
impacted by slower than expected sales into existing programs resulting in a
sequential decline from the third and fourth quarters of 2006.
Printed Circuit Materials
Printed Circuit Materials segment sales totaled $39.0 million, up 7% over
the first quarter of 2006. Sales into communications infrastructure, satellite
TV dishes, and military applications were up considerably over last year's first
quarter, and more than mitigated a decline in sales into the portable
communications and hard disk drive markets. The Company anticipates that the
on-going global roll-out of next generation cellular wireless broadband
communication networks will continue to drive revenue growth in this business
segment for the foreseeable future. Also, consumer demand for increased
high-definition satellite television offerings will provide sales growth as
newer systems are deployed.
High Performance Foams
Sales of High Performance Foams were $26.0 million, up slightly over the
first quarter of last year. Sales of foam materials into the consumer,
aerospace, and locomotive markets grew in line with expectations and helped
offset slower sales of foams into general industrial applications. Rogers' foam
materials comprise its most diverse set of product lines, as they are sold into
every market segment the Company's many products address. During the quarter,
the Company began sampling of its thinnest, softest product for handheld
electronics, with formal launch set for the second quarter.
Joint Ventures
Rogers' 50% owned joint ventures had quarterly sales totaling $22.1
million, down 27% from the first quarter of 2006. In the first quarter of 2006,
the Company's high performance foam materials joint venture with Inoac
Corporation began fully utilizing new capacity, and worked to reduce its
backlog, which led to last year's record first quarter sales. A combination of
excess inventory throughout the supply chain, in addition to a slowdown in the
hard disk drive and portable communications markets, are the major factors for
the quarter-over-quarter decline in sales at all of the Company's joint
ventures.
First quarter 2007 gross margin was 30%. Rogers' balance sheet ended the
quarter with a cash and short-term investment balance of $60.8 million. Capital
expenditures were approximately $7.7 million for the first quarter, and are
expected to be in the range of $30 to $35 million for the year. During this
quarter the Company spent $13.9 million repurchasing 287,000 shares under its
current buyback program, which authorized up to $50 million for repurchases.
The Company's tax rate was 24% during the first quarter and is expected to
trend upward throughout 2007. The anticipated increase in the Company's tax rate
is primarily due to the adoption in the first quarter of 2007 of FASB
Interpretation No. 48 (FIN 48) and the maturation of tax holidays in the
Company's lower tax jurisdictions.
Robert D. Wachob, Rogers' President and CEO, commented, "After a year of
unprecedented growth we continue to believe that 2007 will be a strong year.
However, accelerated program terminations and price declines with some of our
largest portable communication programs are challenging our ability to meet our
performance objectives. As we have seen several times in our past after a period
of strong growth, it's important to remain focused on the fundamentals of our
business model. We intend to make significant operational improvements including
margins along with good working capital management, especially inventory,
throughout 2007. We will continue to invest in our new business and new product
development efforts. The number of new product introductions in 2007 will be a
record. Our second quarter sales forecast is $102 to $106 million with diluted
earnings per share of $0.45 to $0.49."
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 2006 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 May 2, 2007, and Rogers undertakes no duty to update this information
unless required by law.
Additional Information and May 3 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, Investor Relations Manager
Phone: 860-779-5705, FAX: 860-779-5509,
Email: edward.joyce@rogerscorporation.com
A conference call to discuss first quarter results will be held on
Thursday, May 3 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 Controls
Paul B. Middleton, Corporate Controller
Edward J. Joyce, Investor Relations Manager
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
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 (Eastern Time), Thursday, May 10,
2007. The passcode for the audio replay is 6497033.
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
Quarters Ended
April 1, April 2,
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2007 2006
- ------------------------------------------------------------ ---------
Net Sales $115,846 $103,131
Costs and Expenses:
Cost of Sales 80,648 66,844
Selling and Administrative 19,291 17,385
Research and Development 5,688 5,961
--------- ---------
Total Costs and Expenses (1) 105,627 90,190
--------- ---------
Operating Income 10,219 12,941
Equity income in unconsolidated JVs 1,268 2,889
Other Income (Expense) less Other Charges 587 (17)
Interest Income, Net 425 350
--------- ---------
Income Before Income Taxes 12,499 16,163
Income Tax Expense 2,988 3,556
--------- ---------
Net Income $9,511 $12,607
--------- ---------
Net Income Per Share:
Basic $0.56 $0.76
--------- ---------
Diluted $0.54 $0.74
--------- ---------
Shares Used in Computing:
Basic 16,834 16,486
--------- ---------
Diluted 17,647 16,928
--------- ---------
(1) Including Depreciation and Amortization of: 2007 - $5,352;
2006 - $5,347.
Consolidated Balance Sheets
April 1, December
(IN THOUSANDS) 2007 31, 2006
- ------------------------------------------------------------ ---------
Assets
Current Assets:
Cash and Cash Equivalents $23,078 $13,638
Short-term Investments 37,730 68,185
Accounts Receivable, Net 85,216 86,311
Accounts Receivable - Joint Ventures 4,669 5,437
Accounts Receivable - Other 2,129 3,552
Note Receivable, Current 2,100 2,100
Inventories 71,508 70,242
Current Deferred Income Taxes 17,075 15,430
Asbestos-Related Insurance Receivables 4,244 4,244
Other Current Assets 6,221 3,415
--------- ---------
Total Current Assets 253,970 272,554
--------- ---------
Property, Plant and Equipment, Net 143,207 141,728
Investments in Unconsolidated Joint Ventures 26,174 26,629
Deferred Income Taxes 6,690 4,828
Pension Asset 974 974
Goodwill 10,656 10,656
Other Intangible Assets 339 454
Asbestos-Related Insurance Receivables 18,503 18,503
Other Assets 4,522 4,576
--------- ---------
Total Assets $465,035 $480,902
--------- ---------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $17,791 $25,715
Accrued Employee Benefits and Compensation 14,633 27,322
Accrued Income Taxes Payable 17,794 9,970
Asbestos-Related Liabilities 4,244 4,244
Other Current Liabilities 16,942 14,892
--------- ---------
Total Current Liabilities 71,404 82,143
--------- ---------
Noncurrent Pension Liability 11,698 11,698
Noncurrent Retiree Health Care and Life Insurance
Benefits 10,021 10,021
Asbestos-Related Liabilities 18,694 18,694
Other Long-Term Liabilities 997 1,169
Shareholders' Equity 352,221 357,177
--------- ---------
Total Liabilities and Shareholders' Equity $465,035 $480,902
--------- ---------
CONTACT: Financial News Contact:
Dennis M. Loughran, 860-779-5508
FAX: 860-779-4714
Vice President Finance and Chief Financial Officer
or
Editorial Contact:
Edward J. Joyce, 860-779-5705,
FAX: 860-779-5509,
Investor Relations Manager
edward.joyce@rogerscorporation.com