CHANDLER, AZ – Rogers Corp. reported second quarter net sales of $191.2 million, down 21.3% year-over-year and 3.8% sequentially.
Net income was $14.5 million, a decrease of 40.3% compared to the second quarter of 2019, up 9% sequentially.
The company attributes the decline to the impact of Covid-19 on demand across most markets. EMS and PES segment sales declined sequentially and were partially offset by higher ACS sales. EMS net sales declined in the general industrial and consumer markets, including portable electronics, partially offset by stronger sales in the EV/HEV battery market. PES net sales decreased in the traditional automotive and EV/HEV markets, partially offset by higher sales in the industrial power and mass transit markets. ACS net sales increased in the wireless infrastructure and aerospace and defense markets, partially offset by lower sales in the ADAS market.
Currency exchange rates unfavorably impacted total company net sales in the second quarter by $1.1 million sequentially.
"As the result of strong operational performance and favorable product mix, second quarter gross margin and adjusted earnings per share exceeded the top end of our guidance expectations," said Bruce D. Hoechner, president and CEO. "These solid results were driven by continued progress on our cost improvement roadmap, including timely actions in response to the challenging macro-environment. In the near-term, our focus continues to be on the health and safety of our employees and supporting our global customers. In addition, we are focused on accelerating our plans to capitalize on the significant growth opportunities in advanced mobility markets, while we continue to pursue opportunities in advanced connectivity markets."
The company generated free cash flow of $39.3 million in the second quarter. Ending cash and cash equivalents were $298.7 million, a decrease of $9.5 million versus the prior quarter. Net cash provided by operating activities of $46.3 million was offset by a $50 million principal payment made on the outstanding borrowings under the company’s revolving credit facility and capital expenditures of $7 million. At the end of the second quarter, cash exceeded borrowings by $75.7 million. Subsequent to the end of the second quarter, the company made an additional $125 million principal payment on the outstanding borrowings under its revolving credit facility.