CHANDLER, AZ – Rogers Corp. reported second quarter net sales of $242.9 million, up 13.1% year-over-year and 1.3% sequentially.

Net sales were within the previously announced guidance range of $240 million to $250 million. Currency exchange rates unfavorably impacted net sales by $8.1 million compared to 2018 second quarter net sales.

Net income was $24.3 million, an increase of 40.5% year-over-year and a decrease of 14.4% sequentially.

Adjusted EBITDA for the quarter was $53.1 million, or 21.9% of net sales, compared to $43.8 million, or 20.4% of net sales, in the second quarter of 2018 and $53.1 million, or 22.2% of net sales, in the first quarter of 2019.

"We achieved record quarterly revenue and adjusted earnings above the top end of our guidance range in the second quarter, driven by 5G demand and continued strength in ADAS," said Bruce D. Hoechner, Rogers’ president and CEO. "We are encouraged by our strong performance. However, our cautious near-term outlook is due to uncertainties related to ongoing trade tensions, which could affect the current 5G demand ramp, and continued weakness in industrial and conventional automotive markets. The market outlook for Advanced Connectivity and Advanced Mobility applications remains very strong, and we are focused on operational improvements that will allow us to fully capitalize on these significant market opportunities."

Advanced Connectivity Solutions reported second quarter net sales of $92.5 million, a 21.1% increase compared to the prior year quarter and up 15% sequentially. The sequential increase was largely driven by demand for high-frequency circuit materials used in 5G and 4G wireless infrastructure and continued strength in Advanced Driver Assistance Systems (ADAS).

Rogers ended the second quarter with cash and cash equivalents of $173.1 million, compared to $167.7 million at Dec. 31.

The firm expects third quarter net sales in the range of $225 million to $235 million. For 2019, Rogers expects capital expenditures to be in a range of $50 million to $60 million.

 
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