CHANDLER, AZ -- Rogers Corp. saw a sequential rebound in third quarter net sales but still lags 2019's results, the company said in its quarterly report today.

In the September quarter, the maker of printed circuit materials reported sales of $201.9 million, up 5.6% from the June quarter but down 9.9% from a year ago.

Net income for the quarter fell 71% to $7 million. Gross margin rose to 37.4%, up 180 basis points from a year ago, while operating margin fell more than nine percentage points to 4.4%.

Rogers took restructuring and impairment charges of $9.4 million in the quarter related to manufacturing footprint optimization plans involving certain Europe and Asia locations. Additional restructuring charges of between $2.5 and $4.5 million are expected in the fourth quarter.

Sales at its Advanced Connectivity Solutions unit, which manufactures high frequency laminates and prepregs, were off from the prior year, on lower demand for wireless infrastructure systems, partially offset by higher ADAS sales and strong defense market demand. The unit recorded sales of $63.7 million, down 19.4% from a year ago and down 10.2% from the prior quarter.

Rogers said the elastomeric materials and power electronics units saw higher sales in the period.

Currency exchange rates favorably impacted net sales in the quarter by $2.7 million compared to prior quarter net sales.

“We are encouraged by the growth we saw in many of our strategic markets as well as our strong operational performance, which resulted in revenue and gross margin that exceeded the top end of our guidance expectations,” stated Bruce D. Hoechner, president and CEO, Rogers. “Q3 sales were driven by strength in the EV/HEV, ADAS, portable electronics and defense markets. For the fourth quarter we expect continued strength in these strategic markets, although visibility to a broader market recovery remains less clear. We continue to accelerate our efforts to capitalize on the substantial opportunities in Advanced Mobility markets, while also focusing on growth opportunities across our strong and diversified market portfolio.”

Rogers gave guidance of fourth quarter revenue of $195 million to $210 million and gross margin of 37% to 38%.

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