CHANDLER, AZ – Rogers Corp. reported second quarter net sales of $234.9 million, up 22.9% year-over-year and 2.4% sequentially from higher sales in the AES business unit.

AES net sales increased primarily due to strong demand for EV/HEV applications and higher clean energy, defense and wireless infrastructure market sales, partially offset by a decline in sales for ADAS applications.

Demand remained strong in the EMS business, but net sales decreased compared to the prior quarter primarily due to lower production levels from supply constraints and the previously announced disruption to the company's manufacturing facility in South Korea. The lower production levels contributed to the decline in portable electronics market sales and tempered growth in industrial market sales. EV/HEV sales declined slightly compared to strong first quarter sales. Currency exchange rates unfavorably impacted total company net sales in the second quarter by $800,000 compared to prior quarter net sales.

Net income for the second quarter was $28.7 million, an increase of 97.9% year-over-year and down 8% sequentially. Adjusted EBITDA was $55.8 million, up 31.3% compared to the same period in 2020, down 6.7% sequentially.

“Rogers achieved continued sales improvement in the second quarter driven by growth in EV/HEV, clean energy and other strategic markets,” said Bruce D. Hoechner, Rogers' president and CEO. “Global supply chain challenges impacted our second quarter results more than anticipated, and margins and earnings were below our prior guidance expectations. We are addressing these recent challenges as we continue to navigate this dynamic environment. We are executing on our market strategy, and the outlook for advanced mobility remains robust, led by the accelerating transition to electric and hybrid electric vehicles. We continue to significantly increase our investments in new capacity and capabilities to capitalize on the growth opportunities across our market portfolio.”

Ending cash and cash equivalents were $203.9 million, an increase of $4.8 million versus the prior quarter. The company generated free cash flow of approximately $11.9 million in the second quarter. Net cash provided by operating activities of $29.7 million was offset by $4 million of principal payments made on the remaining outstanding borrowings under the company’s revolving credit facility and capital expenditures of $17.8 million.

For the third quarter, Rogers expects net sales of $235 million to $245 million.

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