Rogers to Take $9.4M in Q1 Restructuring Charges | Print |  E-mail
Written by Mike Buetow   
Monday, 02 April 2012 15:16

ROGERS, CT -- Rogers Corp. will take $9.4 million in one-time charges in its fiscal first quarter related to a planned restructuring.

Of the charges, $5.7 million are related to early retirement and other staffing reductions and $3.2 million related to the liquidation of auction rate securities. Excluding these charges, the printed circuit materials developer estimates annualized operating cost savings of $8.4 million in 2012 and $13 million in 2013.

In a statement, Rogers president and CEO Bruce Hoechner said, "I'm extremely proud of our team as we've achieved more than we expected in such a short amount of time, but we're not finished with improvements. Recent organizational changes and cost restructuring initiatives are part of a comprehensive transformation of our global business that will help us to be more agile and responsive to our customers while enhancing value to our shareholders.”

Actions recently completed by the Company to achieve these savings included improvements in efficiencies of supply chain and manufacturing operations, cost reduction activities across its businesses, and headcount reductions through a voluntary retirement program and the elimination of some positions.

As a result of the reorganization, product development, marketing and sales resources are now better aligned with the Company's growth businesses in Printed Circuit Materials, High Performance Foams and Power Electronics Solutions. Additional resources have been allocated to marketing and new business development activities to stimulate growth and expand revenue opportunities. The Company continues to pursue an active partnering and acquisition strategy for several of its core businesses.

The company liquidated its portfolio of auction rate securities, resulting in net proceeds of $25.4 million. Rogers has used $10 million of the proceeds to accelerate funding of its defined benefit pension plan, which is expected to result in an annual savings of approximately $1.2 million.

 

 

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