– Rogers Corp.
guided for second-quarter net sales of $95 million to $97 million, down from its May 2 guidance of $102 million to $106 million. The drop is primarily a result of lower demand for custom electrical components and printed circuit materials, the company said.
As a result of the lower sales, Rogers will lay off 400 workers and expects to take a $3 million charge.
In a statement, president and chief executive Robert Wachob said, "Due to the magnitude of the sales decline, we are making some significant changes to reduce expenses. By the end of 2007, we expect to decrease payroll expenses by approximately $18 million due to the elimination of approximately 300 hourly and 100 salaried positions.”
Rogers said commoditization of cellphones has hurt flexible circuit material sales. Flexible circuit materials have been transformed into a commodity product with increased global competition and price pressure driven by overcapacity, says Rogers. The company believes this condition is not temporary.
Rogers also plans to dispose of its polyolefin foam operation, and this is not expected to incur any material gain or loss. The company expects to complete this transaction during the third quarter.