CHANDLER, AZ – Rogers Corp. reported fourth quarter net sales of $193.8 million, down 13.1% year-over-year and 12.7% sequentially. Currency exchange rates unfavorably impacted net sales by $2.6 million compared to the same quarter of 2018 and $1.1 million compared to the third quarter of 2019.

The firm posted a net loss in the fourth quarter of $28.8 million, compared to net income of $24.5 million in the prior-year quarter and $23.4 million in the third quarter. The net loss was inclusive of a $43.9 million non-cash after-tax pension settlement charge.

Adjusted EBITDA was $34.5 million, or 17.8% of net sales, compared to $46.7 million, or 20.9% of net sales, reported in the fourth quarter of 2018 and $47.4 million, or 21.4% of net sales, reported in the third quarter of 2019.

Advanced Connectivity Solutions reported fourth quarter net sales of $64.6 million, a 10.8% decrease year-over-year and 18.2% decrease sequentially. The sequential decrease in net sales was largely driven by lower demand for high-frequency circuit materials used in 4G and 5G wireless infrastructure, partially offset by continued strength in Aerospace and Defense market demand.

Elastomeric Material Solutions reported fourth quarter net sales of $80 million, down 9.4% year-over-year and 15.7% sequentially. The sequential decrease was primarily due to a seasonal decline in the portable electronics market and weakness in other markets.

Power Electronics Solutions reported fourth quarter net sales of $43.9 million, down 22.6% year-over-year and up 1.8% sequentially. The sequential increase was primarily due to stronger demand for power semiconductor substrates used in the EV/HEV market, partially offset by lower rail and renewable energy market demand.

Rogers ended the fourth quarter with cash and cash equivalents of $166.8 million, down $900,000 compared to Dec. 31, 2018.

The company reported 2019 net sales of $898.3 million, up 2.2% increase year-over-year. Net sales during 2019 were unfavorably impacted by $20.9 million as a result of currency fluctuations, due to a weaker euro and renminbi. 2019 revenue increased 4.6%, relative to 2018, on a constant currency basis.

Full-year 2019 net income was $47.3 million, down 46% year-over-year. Adjusted EBITDA was $188.2 million, or 21% of net sales, versus $184.8 million, or 21% of net sales, for 2018.

“For 2019, Rogers reported modest growth in revenue and adjusted earnings, despite challenging market conditions in the second half of the year,” said Bruce D. Hoechner, Rogers' president and CEO. "Fourth quarter revenues were impacted by expected weakness in industrial and automotive markets and a greater than anticipated slowdown in wireless infrastructure demand. Looking ahead to the first quarter, we have limited visibility across multiple segments due to the still unfolding impact of the coronavirus outbreak but believe revenue will be impacted in the range of 7% to 10%. From a strategic growth perspective, we remain optimistic regarding the outlook for Advanced Mobility applications and the China 5G wireless infrastructure market.”

Rogers expects first quarter net sales between $185 million and $200 million. The revenue range incorporates a 7% to 10% reduction from the expected impact of the coronavirus outbreak and is wider than normal due to uncertainty related to the evolving situation.