CHANDLER, AZ - Rogers reported fourth-quarter sales at its Advanced Connectivity Solutions unit rose 5.3% to $75.5 million.
The laminates maker cited growth in high frequency circuit materials for automotive advanced driver assistance systems (ADAS) and portable electronics, partially offset by lower demand for wireless 4G LTE applications. Fourth quarter 2017 net sales were favorably impacted by $700,000 due to fluctuations in currency exchange rates.
The company reported 2017 net sales of $821 million, up 25% from $656.3 million in 2016. Net sales during 2017 were unfavorably impacted by $1 million as a result of currency fluctuations, including a weaker Renminbi, partially offset by a stronger Euro.
Full year net income was $80.5 million, versus $48.3 million a year ago. Adjusted EBITDA was $189.7 million, versus $130.1 million.
Gross margin was 38.8%, up 80 basis points. Operating margin rose 310 basis points to 15.9%, and adjusted operating margin grew 320 basis points to 18.5%.
Overall fourth quarter net sales were $209 million, at the high end of previous company, up 20.8% from the fourth quarter 2016. Currency exchange rates favorably impacted fourth quarter net sales by $4.5 million due to strengthening in the Euro and Renminbi. Net income slid 35% to $7 million, while adjusted EBITDA rose 16.5% to $38.1 million.
Gross margin was 36.1% in the quarter of 2017, down from 38.6% in 2016. Operating margin was 9.1%, versus 10.3% a year ago, and adjusted operating margin was 13.2%, compared to 14.8%.
"In 2017, Rogers set full-year performance records for both revenue and profitability, successfully achieving strong growth across all of our business segments,” said Bruce D. Hoechner, president and CEO of Rogers. “Our robust revenue growth continued in Q4, although we did have temporary operating challenges during the quarter that are being addressed. We are optimistic about the outlook for 2018 given Rogers' strong leadership position in our core markets and our ability to execute."