CHANDLER, AZ – Rogers Corp. posted first quarter net sales of $248.3 million, an increase of 8.3% year-over-year and 7.7% sequentially.

Growth is attributed to higher EV/HEV, ADAS and industrial market volumes and commercial actions. Further sales growth was tempered by lower demand from customers dealing with Covid impacts and component shortages. Additionally, labor and raw material constraints moderated manufacturing levels for certain products.

EMS net sales increased 11.5%, resulting from higher EV/HEV and industrial market sales and the Silicone Engineering acquisition. This increase was partially offset by lower portable electronics revenues from Covid impacts. AES net sales increased 4.7% due to strong EV/HEV revenues and improved ADAS volumes, partially offset by lower wireless infrastructure revenues.

Currency exchange rates unfavorably impacted total company net sales in the first quarter by $1.3 million compared to prior quarter net sales.

Total net income was $16.6 million, down 46.8% compared to the first quarter of 2021 and 28.1% sequentially. Adjusted EBITDA was $47.2 million in the first quarter, a decrease of 21.1% year-over-year and up 13.2% sequentially.

"Rogers delivered solid first quarter revenue growth driven by EV/HEV, ADAS and industrial market sales," said Bruce D. Hoechner, president and CEO, Rogers. "Underlying market demand continues to be strong, although further sales growth and margin improvement in the first quarter was tempered by global supply challenges and Covid impacts in China. The outlook for Advanced Mobility and other growth markets remains robust, and our investments to capitalize on the long-term growth, particularly in the EV/HEV market where demand is accelerating, remain on track. We continue to look forward to the combination with DuPont and the many compelling benefits we expect it will provide for our employees, customers and other stakeholders."

Ending cash and cash equivalents were $182.1 million, a decrease of $50.2 million versus the prior quarter. Net cash used in operating activities was $13.7 million, compared to net cash provided by operating activities of $18.2 million in the fourth quarter. Operating cash flow declined versus the prior quarter primarily due to an increase in working capital, resulting from higher sales and additional inventory for new production facilities and building safety stock. Capital expenditures were $28.2 million in the first quarter compared to $27.7 million in the prior quarter.

As previously announced on Nov. 2, Rogers has entered into a definitive merger agreement to be acquired by DuPont for $277.00 per share in cash. Rogers' shareholders approved the merger agreement on Jan. 25. The transaction is expected to close late in the second quarter or early in the third quarter of 2022, subject to the satisfaction of other customary closing conditions, including receipt of certain regulatory approvals.