CHANDLER, AZ – Rogers Corp. reported net sales of $210.7 million, up 8.7% year-over-year and 4% sequentially.
EMS net sales increased slightly from continued growth in the EV/HEV market and improved demand in the general industrial and traditional automotive markets, partially offset by a decline in portable electronics market sales. ACS net sales increased due to strong automotive demand for ADAS applications, partially offset by a decline in defense market demand. PES net sales increased in the EV/HEV market, partially offset by a decrease in the industrial power and mass transit markets.
Currency exchange rates favorably impacted total company net sales in the fourth quarter by $3.1 million compared to prior quarter net sales.
Net income was $15.2 million, compared to a net loss of $28.8 million in the fourth quarter of 2019, up 117.1% sequentially.
"Accelerating growth in Advanced Mobility markets, combined with continued improvements in operational execution, drove fourth quarter results above the top end of our guidance," said Bruce D. Hoechner, Rogers' president and CEO. "Despite the challenges of the past year, 2020 was a year of substantial progress for Rogers. We advanced our positions in strategic growth markets, achieved sustainable improvements to gross margins, and significantly strengthened our balance sheet. Looking ahead, we remain enthusiastic about the growth outlook in Advanced Mobility, and particularly the EV/HEV market where momentum is accelerating. We are confident our innovative solutions and deep materials expertise will enable Rogers to continue to play a leading role in the global transition to clean technologies and in other markets across our diversified portfolio."
Ending cash and cash equivalents were $191.8 million, an increase of $5.7 million versus the prior quarter. The company generated strong free cash flow of approximately $40 million in the fourth quarter. Net cash provided by operating activities of $51.4 million was offset by $35 million of principal payments made on the outstanding borrowings under the company’s revolving credit facility and capital expenditures of $11.4 million. At the end of the fourth quarter, cash exceeded borrowings by $166.8 million.
2020 net sales were $802.6 million, down 11% year-over-year due to lower sales in all business units. The decline in net sales was mainly due to impacts on market demand from the Covid-19 pandemic and the effects of trade restrictions on the wireless infrastructure market.
Currency exchange rates had an immaterial impact on total company net sales during 2020. EMS net sales decreased due to lower demand in the general industrial, mass transit, consumer and automotive markets, partially offset by robust growth in the EV/HEV market and slight growth in the portable electronics market. ACS net sales decreased in the wireless infrastructure and automotive markets, partially offset by strong growth in the defense market. PES net sales decreased due to lower demand in the industrial power, mass transit and vehicle electrification markets, offset by strong growth in the EV/HEV and renewable energy markets.
Net income for the year was $50 million, an increase of 5.7% compared to 2019.
Ending cash and cash equivalents of $191.8 million increased by $24.9 million versus the prior year. The company generated strong operating cash flow of $165.1 million and free cash flow of $124.7 million in 2020.
For the first quarter, Rogers expects net sales of $215 million to $225 million.
A fire caused extensive damage to Rogers' Utis manufacturing facility in S. Korea on Feb. 9, and operations were disrupted. The company is considering various recovery options and expects to resume production in S. Korea during the fourth quarter of this year. An estimate of the impact of this event is included in the first quarter financial outlook.
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