ROG - Earnings call transcript Q2 2021

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Operator

Good day. My name is Todd, and I will be your conference operator today. At this time, I would like to welcome everyone to the Rogers Corporation Second Quarter 2021 Earnings Call. [Operator Instructions] I will now turn the call over to your host, Mr. Steve Haymore, Director of Investor Relations. your begin may you conference. Sir,

Steve Haymore

be with market results competitive cause may measures meaning statement. Good Thank today. conference along the operations slides with and Investors On not can factors to could the prepared include in news differ the was Reconciliation X, everyone, Securities Such Corporation directly but note that are call, to Also, measures demands, you, this for financial section found be call Reform generally of to the of and Second in of can Rogers issued that website, this call These The Slide are statements the on Todd. Rogers Call. XXXX Quarter be in comparable welcome forward-looking deck GAAP conference our and economic in environment. and Conference before any Private actual for most posted factors. measures the financial that we call to that accepted afternoon, considered XXXX which our on statements slide found begin, release in of today's within certain of section Earnings Act from as today's the the accordance strictly uncertainties materially those Litigation many could there historical, the during forward-looking Investors non-GAAP financial were those discussions principles. conditions, is website. exist that are should accounting not include uncertainties subject

CTO. will Bruce. CFO; Vice Mayampurath, over call today CEO; and now Senior and turn is President Slide Bruce I me the and Hoechner, Ram Turning Senior to Bob President Daigle, and X. Vice With to President

Bruce Hoechner

many rapidly. prior and cost second the anticipated Rogers was of across guidance. labor These we're below everyone, that the margins growth midpoint Steve. the which managing especially issues revenues constraints, by our us were you experienced of delivered and X. was global in supply and resulted conditions of not specific material QX, grew In chain our today. strong where at much Please proactively to raw increases, Demand companies Thanks, significant guidance. through EV/HEV challenges EPS our in more faced and X.X% of quarter. line than immune joining and million, operational were versus $XXX our turn we in quarter actions. included increase the Rogers market, shortages, commercial to Slide an The and afternoon, top for manufacturing and and tempered the sales supply business Good thank

Our operational achieve improve, excellence XX% expect expansion and to conditions are our and programs track target. we supply margin capacity gross on as

second mid-teens solar Industrial at were relative Turning the revenue declined Sales grow EV/HEV focus Defense to which grew review adjustments market ADAS a rebound quarter. Led situation compared extremely demand, in remains due a sequentially. prior quarter. at again position of three our to leading to flat the rate a outlook I increasing market the -- sales is detail And as the ADAS temporary the high energy quarter in ADAS. and moment. a to growth growth. more the in market a inventory sales our was a believe wind of at robust, in quarters We rate. rate rebound pace In at will QX in a sales and this strong quarter, first relatively of is strong market clean improved sharp a areas. sales single-digit strong, prior following were several double-digit rapid by a strategic our in to continued market with strong markets. revenues in after

our QX UTIS over Our decreased disruption at slightly market due the electronics facility. in the QX in portable manufacturing sales to

much Excluding electronics we Overall, the portfolio reflecting market. are demand increased revenue encouraged the very quarter-over-quarter, across especially EV/HEV UTIS ongoing by our portable of healthy portable strength sales, market. electronics of the X% and the in

we strong, solutions high-performance in strategy mobility. innovative to benefits our seeing positions the are long-term advanced competitive leverage tailwinds, our and to of Our markets continue secular as be and with such

EV/HEV longer-term driven next Turning continue increasing I'll levels an further opportunity in ADAS, radar of with update market by on units provide before penetration to Slide autonomy. X. mobility. discussing we outlook first mid-teens ADAS a growth expect I'll over five to the the years, for advanced growth begin In and vehicle auto the outlook.

to autonomous helping Next-generation drive radar vehicles, innovation of technologies future space. the Rogers this and essential in is are to

in We leading continue next wins current generation and both our in to design position strengthen this with market programs.

to the Moving outlook. rate be continues annual Recent to XX% robust The very over growth continue next market. five strong to expected support an EV/HEV more years. outlook of the long-term this trends than with next

electric sales sales vehicle EVs year-to-date second in the in new plug-in market. example, XX% the the of of of accounted quarter, a For reached market. and for HEVs Europe exceeding China, milestone In XX%

Third-party analysis in for an adoption, changes. vehicles supportive consumer by growing and non-ICE to preference EV/HEV also policy points acceleration driven

previously report China, sales other and plug-in five the of now are Our that anticipated. in combined recent Europe U.S., powertrains expected sales to all E&Y highlighted EV HEV years earlier surpass and than

expectations continued growth full also to accelerate. addition, for In vehicles electric

double To four vehicles of the are latest electric million strong the investing EVs we the years Reflected have million next globally in to reach in only growing are close these to their number estimates vehicle trend new products EV/HEV decade. market in for order in from projections who announced in two the their growth significant outlook to highlight of advanced units the and of our aggressively growth automakers Please X mobility, invest of and growth is acceleration next We estimate and Rogers or This transition units how strong XX of from compared our portfolio to to degrees electrification. of opportunities XX% capital on are focused market. support in this from AES next business capacity the both advantage towards to in this spending over X. plans full an full plan EMS to forecast new to ago. fleet mobility. take to about instance, production positioned years. capabilities. advanced that IHS For turn and the capacity within entire are Slide will year rising the I'll increase Both we benefit the market the

the vehicle to are and efficiency substrate HEV content wide incorporating EV reliability, elements designs high-performance EV/HEV semiconductors our provide. require we and address and and performance Rogers products. ceramic and have design These For manufacturers, that In opportunities our business, Increasingly, needs. with these are range. ceramic safety, both interconnect solutions power AES packaging improve band-gap substrates semiconductors critical

in degrees Our substrate a with more content higher a full increases electrification EV to hybrid. than compared as Xx and higher mild is of

an We growth. are adding provide by Power and are to vehicle. interconnects power wins in are to are our the content reliability encouraged distribute EV/HEV. in recent and of and this success our that performance critical They the design opportunity and market design additional essential -- components

EV materials innovative in market. We our develop secured our to have have performance these business, as In design entrants that opportunity up EV leading improve and leveraged ramp several batteries. customers grow to solutions EMS we polyurethane the silicone coming to volumes year. the This wins expertise in reliability and expected of is with the

EVs battery this dampening opportunities pads other significantly of EV our driven year, compression battery and Our increased number important include content HEVs used plug-in battery Battery with and be a other pads sizes. battery as sealing have can battery a systems, for solutions pads content and such which design of across have types opportunity, solutions, vibration pack all increases larger and size. compression wins. Sales by which

high the market wind in is grow a solar in CAGR as single-digit XG and areas smartphones expected Year-to-date combined grow have expect energy, the In double of and our energy are these In clean strong, solar mobility, over are to the features defense. at grows energy, markets higher the portable interconnects. means ceramic to and the portfolio, to previous markets electronics approximately sales such has over versus and and years. portable power content our rate of there as market of In expected clean our to been of compelling can Rogers substrates addition that exposure to growth sales, we and markets the XX% mid-single-digit opportunities wind rate. overall opportunities advanced These growth comprise XG range The of generation time. next we and nearly to XX% advanced total five market higher XX% a both other at market, performance phones. also smartphones with at year electronics, this XX% from

market defense and a robust of several longer-term as good XG drive for rebuild lower Our continues are by years, our missile capacity, defense provides be near-term opportunity, circuit Rogers which to radar is with electronic to advanced expected Rogers UTIS technology outlook UTIS as sales to demand demand capacity. for systems especially materials. The portable in promising next as programs the remain we increasing but we the such growth funding expect tempered

from call. Slide Turning the key today's to X. recap I'll messages

demand track. continue in such our Near and includes remain global but of by we faster-growing This the our as operational encouraged are progress managing we but from chain isolated are defense. We are markets making clean business. programs EV/HEV, term, and see energy that issues, the supply other strong like market also on opportunities challenges, we attractive not current market these to excellence much across

and to continue focus market seeing opportunities portfolio of our add We and design to in our we wins, are the on with advanced growth competitive results positions new mobility. strategic our in especially strong

in and forward the ahead. in investments growth moving with take new ensure significant of advantage the rapidly capabilities are We our market EV/HEV capacity related help our leadership and to to

our over QX to in Now to detail. Ram I'll turn discuss more it results

Ram Mayampurath

Thank afternoon, Slide everyone. will on X. begin good I you, Bruce, and

below in million, EPS Gross was his sequentially of to QX continue midpoint X.X% overview, our quarter due our range. I cost detail, to material guidance. followed improved guidance our our the of primarily in the guidance and in line. second XX.X% of $XXX.X XXXX adjusted review the quarter Bruce ahead, $X.XX and As quarter. raw at our revenue In margin mentioned slides of top impact results the to grow we increases third by were which shortages range, will

had X% to adjusting and disruptions sales currency revenues Slide power of growth sales solutions. QX customers $XX.X $XXX.X material demand declined modestly strong, revenue. raw the than quarter. business versus were accounted general inventory XX% XX% EV/HEV but EMS have order Turning the grew over revenues grew UTIS delivered X.X% material will Volume slightly of compared decrease made continues of impacted due lower supply X% segment grew in revenues. quarter to and XX% QX. quarter, was sales, quarter segment X% $XXX.X approximately Within resulted demand was and EMS sequentially. strong RF revenues XX% to to of was of to Rogers by semiconductor increased the to to the revenues and unchanged revenues devices to of QX. also the accounted QX XX. XX% Wireless revenues EV/HEV million X.X% sequentially. versus for PES UTIS which segment flat in sequentially We QX of lower Energy Aerospace business strong used the and the unfavorable Clean revenues demand ADAS relatively mid-single production X.X% prior tempered with XX% be than higher million, Defense digits believe industrial grew levels. substrates and X% the were in solutions, AES Ceramic represents power which shortages facility. quarter. due quarter accounted our the business that segment X% million, for energy and for substrates meaningful and and increased QX AES long-term due very timing. XX% a X.X%. the prior was UTIS sequentially. increased offset semiconductor for raw finished by a momentum. rates constraints portable revenue. to of electronics revenue first sales, by were revenues revenues for XX% versus and relatively of XX% infrastructure revenues The a Lower renewable revenue and of Market applications very up in business our sales

Our of year. first from certain of products plan the is half ramp-up end restart with XXXX capacity UTIS by to full next the production of

Turning to Slide XX.

midpoint of million gross revenues, basis than QX range $XX.X was XX for points margin or second the both XX.X% Our the guidance quarter quarter. lower of and for our the

programs Our on the volume are operational from quarter. we the and track, excellence in benefited higher

to negatively quarter impacted margin material However, raw chain constraints points higher-than-forecasted QX in the lower by was basis supply margins. due resulted XXX EMS. shortages the Gross for in

raw XX AES by material both cost in basis unfavorably points. Additionally, EMS margins increases and impacted

challenges third has continue material the we since the improved, supply into situation to raw expect Although some quarter.

material we $X.X increasing actions will have QX was expenses unfavorable detail or cost on well based in the changes Other as of XXX increase compensation results. basis points of as These previously, to The points QX were a XX.X% mainly to QX Adjusted $XX.X million due of on we adjusted million of to income compared positive $XX.X mentioned basis QX. higher taken expenses. and compared income actions XX, performance-based in for Also mitigate than of for timing to raw of the XX QX. adjusted to As adjusted business. XX.X% expenses for commodity on a certain costs. was QX other adjusted our of income commercial than expenses impact have in reinvestments million $XX.X operating outlook, million net lower income operating QX $XX net revenues, or expenses million. higher revenues, QX were stronger The operating Slide

of and Although prices portfolio decline the adjusted The copper of other at EPS lower operating the end gains the and income were steep due prior described just the decline it quarter. reasons copper net versus the lower higher was expenses in were than quarter. primary meaningfully income of QX, positive QX for to back hedging

from the the with $XX.X $XX.X facility Turning million we million of cash of $XX.X QX, $XXX.X our We working repaid quarter flow the of Slide second credit Company to increase in capital million a The $X operating quarter in generated million year-to-date. million. cash Company the generated capital. $XX.X on In free quarter, activities, an the We ended XX. million with no position of net quarter due ended of debt. $XX.X expenditure. and and spent In outstanding million

strong $XX to generate continue and to the accelerate growth and cash a the flows million guide free robust us have $XX year to to balance We necessary of expenditure the our for to inorganic organic full very investments XXXX. continues million Company capital support The provides opportunities. that sheet flexibility

the led sales third XX. see portfolio to quarter We EV/HEV. Slide on guidance in second of across our year, of now most growth Turning by half continued the

to guiding in this tempered million However, third to will materials. on quarter lack our certain Based range million. be of we the availability raw the of $XXX by factors, revenues are these be of $XXX

expect margin continued improve continue We will items operational that driven to supply volume, sequentially, excellence certain chain QX by of commercial and higher ongoing into will initiatives, gross These actions. offset the QX. challenges impact

reasons, initiatives. third For to operating support XX.X% are growth a midpoint increase due a one-time of to with gross margin to million range to XX%. these guide to forecasted XX.X% expenses mainly strategic QX the we quarter be cost of $X in sequentially,

the We I guided back effective $X.XX tax is share to rate diluted are full to for guide diluted turn guiding the to for per of quarter. earnings third in $X.XX GAAP fully range the to the XX% of share, now we year QX the for adjusted XX%. will in $X.XX questions. call to the range operator per earnings $X.XX fully The

Operator

Our comes Moore Instructions] of CJS first Daniel Securities. question [Operator from

Daniel Moore

start the is get would were I'll to any that shortages? QX or have much that supply the on and impact embedded of trying called there global it with impact higher a million general gross how Do out. a chain guidance. been semiconductor you for impact Just was challenges if revenue in any $X.X beyond not meaningful sense and continued guesstimate margin have sense you

Ram Mayampurath

without at our exceeded in least have without to of We have probably the line. supply $X range constraints. more million would million would the -- chain $X than top top guidance gotten We end revenue

Bruce Hoechner

that, add of working as But through supply forward, opened QX we're in in extremely And account. demand to just taking I and the we're a Yes. the well, as bit think constrained side look we're and we to markets, as the call strong today, the chain outlook I remains our this. into that

Daniel Moore

doubt. at to it to leave bit one-time No QX growth. more $X costs little support million I'll that. incur expect the color maybe in a just in And on you And

Bruce Hoechner

Yes.

an making we're the making resources analyzing this advantage So really corporation full opportunities appropriately. taking are for is out sure we're that of growth the and that there, our applying sure opportunities investment that in

Daniel Moore

I'll really maybe Perfect. more quick. And one sneak in

industrial. Just

your So direction there? recovery it of flattened supply still little of It in your Is gets and/or but just a XX% quarter. the on growth for largely general business. less underlying attention, out chains? What's the that sense

Bruce Hoechner

that And growth recovery overall. issues. impacting are -- global through industrial good quarter first there saw supply move to as in think in Yes. the the general supply the chain industries of the we are And expect we business We the a to move industrial. I that constraints as year return through

So as into we move year of the here. half second

Operator

with Our Dorsheimer Jed Canaccord next Genuity. comes from question

Jed Dorsheimer

you putting of it's for such opportunity that towards -- the to the because and could businesses I you -- spread out I'm of over at not out, looking this mobility, and call versus seem whether how capital that that -- I'm return curious segments? guess, you're business thin. is looking being terms a putting help maybe not you're bit lifecycle multiple is great from you in And -- wondering in one just of if follow-up reason you're each particularly money more in the or too on CapEx how you're the a different have some invested it's you're just advanced perhaps but to asking the it's the a of of I'm segue segments. the the why And spread that

Bruce Hoechner

more bit side. little the So will maybe the of Ram that, take first on part a comment I'll and ROI

businesses, those as well the I think in investments specifically as battery we the that of the backdrop ceramic these done to markets EV/HEV place. return is substrates to both on against And we at of make Ram, the see we've and significant right ensure that's plants continue where the course, monitor that, pads, you this point. side, the in add are investment got like. making capacity in the going. both and extremely that to we We world in around to the if care compelling And might profitability you think investments

Ram Mayampurath

Yes.

-- our continue you have here, CapEx compared forecast to we to give we the invest. doubled just 'XX and will a 'XX, CapEx our in scale So to

to continue our majority, in we if Our lines invest beyond both the investment ahead. plan mobility of than And and XX% AES more you thing, investments say product CapEx. the just levels demand as across going more at these for And supporting to is is the units, go EMS. -- prepare our business towards business one advanced I'll

investments. We to out also in capabilities for target takes account we the achieve need actively those improve gross investing there to have for invest into we business. are XX% to the areas put And where across us margin

So only making for Capex, and across it's overall those gaps. P&L innovation we but not preparing the capabilities up are and

Jed Dorsheimer

a Rogers? how two publicity within the side in there's segments, types least shortage, potential business? things, that negative those Got two cascades which it back on total just the don't if Is some just I'm wondering are of is affecting volume situations it. -- the issues OEM much affecting Maybe of just mobility at as uses of of there's to auto kind of volumes. advanced of embarrassing within then the chip of obviously mind, recalls. follow-up, pouch with you there's terms And some that

Bruce Hoechner

high. all volume. some And seeing volumes some is be battery. from some very anticipated, might there the course, there are right? down of we one impact engines. be It effect, electrification not we EV of Bob great So very maybe impact we're on on their of heard dampen been auto there on chips. saying there still And some could that had of as growth we think impact talk robust, electrification, is not And that which chip auto some that it's going it's chips is but The as to manufacturer we're the because to that I'll we know still vehicle about And the the there's -- first. seeing. ask the take I'll So think ICE manufacturers, we while that the really

Bob Daigle

Yes.

I to question actually it yes. any about the long the I don't think Jed, reliability, So our disruption. improve us. what terms when that around I think -- battery, think see term around should products of in we do see reliability help lifetime, you don't and and I --

sound I think technology pass/fail. is with the

other I -- challenges that think in they're working the challenges through But we general, the kind issues. type those facing, of problems. of is industry solve we're

view view solve those a company I -- positive as net kinds as problems our So would us with all in a I wouldn't it for that. products. in, We of

Operator

B. question next from Riley Ellis Craig our Securities. of take We'll

Craig Ellis

ADAS. I wanted just start with two-parter, on to

on The we on first it's your -- be the or part titration Bob. the part broad-based This either going of in more occurring how question? of cycle the that's longer-term the one term. it is near Bruce and where might more titration is for in that's are And sense what's in that

of people we think investors lot at are what To LIDAR. could extent think that well As be opportunities looks Rogers of for in has have imaging you like at and term? five look four technology radar, would for equally level level share that doing the type that necessary a kind that longer and of opportunity radar that look other -- in component have and at would an minuses the looking tool it's -- LIDAR and they in pluses beyond same I say a what

Bruce Hoechner

adjustment. inventory the I'll So ADAS take

we lot There QX, through on as in balance. still As was QX, things we move we there's an we think a here. into of be adjustment should going QX think But I in probably sure the make move And semis by the supply. early to of mindset, chips, the the think of buying trying they that in of first part had the of year makers some radars. relatively

like said, can quarter, And balance. see you Bob, fourth through I get it working in they're I we'll think So talk about that. LIDAR.

Bob Daigle

Yes.

radar that multiple as seen the vehicles. the that contribute Typically, going to I'll Just have evaluate addition platforms the industry it has in vehicle have X to in and you're I we've to would technologies to creating come general, XX to the guess sensors, cameras. conclusion, frame envelope basically that around autonomous basically LIDAR

we full I'd move think rise. autonomous, content towards continues say, as I Radar to So

think really got is work be wild strong lot on activity... a a of card, that's all these the I high-definition We've us which into going accelerator radar the would days. for

Craig Ellis

about You're which... XD, Bob? talking Or

Bob Daigle

Yes...

Craig Ellis

classifies which XD. Yes. or Or characterizes

Bob Daigle

Yes. Creating basically versus frankly, weather radar it's the a image with being to Radar susceptible conditions. box, main advantage, not over LIDAR. penetrates no LIDAR

for vehicles, of a true that's in autonomous So the us level that pretty belief destination in for bigger a parts industry play long-term the radar, high-definition there's say the significant five And basically, radar I'd will imaging here. is radar. opportunity role high

Craig Ellis

Yes. more That with radar. you've makes sense given been the

automaker on characterizing to question points but referred one EV the Pretty for of XX% second The current CAGR market there's that sure that HEV, that great the I think dynamics. you and see it's the electrification to is out from in automaker. that all unchanged there, we've pull-ins of the And that's had seemingly ago. six, rates were nine from subsequently, months growth if at after least not

a it point that Or XX% we've something is, CAGR, your mean Is and more maybe sense would question the the lot while just growth does mean frame? is a got more that rate that underneath XXXX momentum maybe XXXX visible to? XXXX we've pull-ins that it beyond really durable so that to into really And CAGR? got is that time else you all those

Bruce Hoechner

days. these we growth very it So I believable think solidifies rate. it's mean that

anymore. ago, imagine think a kinds would don't to years those about It would of I that. people challenge talking be anybody growth. is be still two imagining think I it

continue. think full rate though, an will what the announcements XX EVs course years or going various to of that I so, see, is extension OEMs with of over of we to the growth the the going next

rate 'XX, opportunity. to well out as 'XX at and looking something 'XX, So not get consumers chargers, that's growth tuned that built the the is course, which really unreasonable is certainly the new your we're going And the point acceleration these as out given about into for come get models a as of networks it. beyond XX% happen

Craig Ellis

would charger incremental in big to in the And what how Rogers? be not the we opportunity the network to automobiles, see

Bruce Hoechner

there's assessing We're large work there's other are interest going right that various come OEMs as because and on the in now Coast now. system in who us. it's their there. has the space that, to of and OEM there, West beyond right Certainly, players, a other third-party And out out lot folks of that

Craig Ellis

Okay.

about the the So bump in the maybe? up quarter answer million part of the $X OpEx is point in

Bruce Hoechner

good. a assumption. That's good Very

Craig Ellis

Thanks so much.

Bruce Hoechner

an Yes, point. think is this important Craig I

We are looking execute opportunities those on against and market strong that adjacencies and and investments to build making -- at today, in forth kinds the to understand position we're our really of so that's why them it.

Craig Ellis

see really coming to guys is, hard remarkable it is you the where really a It how done positioned now. have to but business market to lot get of work you the is

have to you an So absolutely, seize. opportunity

Operator

from We'll take our next question Patrick Ho Stifel. of

Patrick Ho

and get through perhaps behind that do into what the buffering you in supply be constraints terms of might but you these outlook actually XQ, we in what's linger you think be you Korea, might the other or is year, -- This XQ? into might strategic activities, perhaps next -- remediation as saw constraints think Brian on for revenue I in Patrick. Maybe happening

Bruce Hoechner

team the of particularly the is those house this through So the this. And in materials. EMS side an is this been the working industry-wide situation, resins certainly, and has in

improve. so are things backups And of freezing, capabilities be Coast as pop this well. by into even But we're from alternatives to well. one we up, had so certainly, get see I'll QX, supplier, QX, and forth, those there it's but across working think I impact. to the looking sailing working upstream seeing we'll at not as we're work chain already. starting just year, we board And when make is say that, The suppliers. through we real that have we but issue sure And supply issues the an should the in it anticipate a And bit robust the good And we're as end issues smoother disasters, that have there. shape. floods, and always as Gulf

Patrick Ho

in black fair. calling that's you Yes, have forecast. Won't swan it events the Okay.

you did out industrial, terms call For more that in maybe effective impact QX, were markets industrial? in particular of the within any

Bruce Hoechner

submarkets. earlier, in quiet No. lot -- as we're customers pretty much constraints that of think we supply relatively some had on number -- all our I had some a demand. It the And the of then terms quarter, not of -- do materials. said our They with pull of saw we a chain were the was of that to in

Patrick Ho

it. Got

Okay.

for range, ADAS, around commentary down concentrated I'm plateau, is everyone in find doesn't that kind maybe just maybe the pretty the too you the dynamic? the with any uniform? the Or long it last maybe sort to strong you late, chain, here. go a things. -- it food geographies this curious, And I of do dealing, particular that's by near-term geography, So But of up was grappling lastly, growth that terms is same and heard when of of

Bruce Hoechner

see it's or didn't ahead. think any specific pretty I uniform. We that geography was lagging

overbuying think within supply there materials, we so holding some was chain, board that. the the through they're some working shops or So extra forth, just and of and

Operator

Research. Josh next our Silverstein Wolfe take question We'll with from

Josh Silverstein

any been challenge I'm environment? because strong how kind I your some you're logistics Have the curious been have sort conversations that. for of price? But know facing to push on of the that You able in products. increases this through demand talked just of you about issues. on

Ram Mayampurath

Ram. This Josh. is Yes,

are QX. material more through coming that we that raw -- -- in through yes, We impact So passing favorable pushing and QX. We'll of started see in much increases. through commodity impact our cost

see those will our numbers. But into of will majority continue in QX actions some you'll -- And QX.

Josh Silverstein

terms to just of the -- $X of million pricing that the related kind revenue taking that well, sequentially, in uptick then? mostly is Is

Ram Mayampurath

that No, in there's probably of XX% about increases. quarter-over-quarter pricing,

Josh Silverstein

then And just it. Got you. maybe Got another question. financial Okay.

out imagine cleanest for off? continue to deploy for one are guys Are in that is kind pick are you position. deploy up companies to are balance relative What leverage. in for other use try now? sheets because looking just struggling some you what guys the strength? you and what it of balance this and waiting for look out in you you that strength some a like or could curious Or advantage the other are to as that there I to this there hurdles guys capital, clearly with there companies position that guys cash you guys can it's to that looking that as the You I'm build of run kind of of same best working of through environment, get to right it sheet the take

Bruce Hoechner

as and other Yes. here, M&A market has that a But year part This in side. the EMS lot bolt-ons strategy. would into at fit on XXXX our And really help and Sure, been our with our of the and focuses there's move align so we in a both is activity, as businesses, core know, of and AES technologies forth opportunities our focus core Josh. our portfolio we into of COVID for and looking well. all as didn't

So ourselves position how geographically we've got looking that. also in to targets. from We're around at position from working a M&A through the world market We're geographies an perspective.

they're Go and there. multiple It's there's to we ahead, opportunities. getting execute. things Ram. But question believe going that there's on, So them of a just

Ram Mayampurath

to been addition cash time has seen some in that, pretty for now. it to generation free add and robust, flow generation to right? the the well, just balance sheet, So cash is as Our you've

look financing as at cash certainly that you increase, at free have sheet that flow. the balance from look will funding. we if needs to investment those of organic opportunities And options been at us, our we So look of ahead all

investments on grow at to look they said, and are organic table the else and So primary inorganic our everything shareholders as options business. cash like return we the to Bruce

Operator

CJS Securities. question of will We Instructions] next our take [Operator Daniel Moore from

Daniel Moore

just update capital was and discussion sheet balance covered. The allocation

just and the timetable prior So to Bruce, expectations there? thoughts about to expectation, running change I up that confidence mean, Any and and your year-end? from on around that? is UTIS, the Any be

Bruce Hoechner

towards we'll some of capacity products. confident UTIS the end is year, into produce of next year. to seen we've get producing this of year, the full starting So year. are we push the certainly fully be of quarter out next What first bit capacity back but to the in a a But early

Daniel Moore

then on Got margin front. one And it. more the

of actions from the do guess, range but upside movements that taken commercial over, -- is as back bit continue in see come within are gave price not the as QX? here if raw that well what for or there a -- way more pricing favorably, that they opportunity to the did over, toward your material there to the of copper guidance an starting you you've Given end is quarter, sort I you prices little roll embedded guide?

Bruce Hoechner

So the come XX get by upside material, XXX the raw and could X% points. sales grow we more supply basis the from gross to we to If QX will X% constraints. probably we could needed, to margin another to

than QX of more availability from raw from increases in will materials any So come price. or cost the additional upside

Operator

remarks. like the this I Bruce have questions. would At we no you. turn back call to closing for Thank time, further to

Bruce Hoechner

everyone I'd everyone. enjoyable a for and have safe us thank today and evening. Thanks, like to joining

Operator

This concludes participation. you for today's call. your Thank

You disconnect. may now

Rogers (ROG) 31 Jul 212021 Q2 Earnings call transcript