CHANDLER, AZ -- Rogers Corp. posted first quarter sales of $213.4 million, up 4.3% sequentially on higher sales in the Advanced Electronics Solutions and Elastomeric Material Solutions business units.

Sales were down 12.5% versus a year ago.

AES net sales increased by 4.1% primarily related to higher aerospace and defense (A&D), wireless infrastructure, industrial and renewable energy sales, partially offset by lower EV/HEV and ADAS sales. EMS net sales increased by 2.8% primarily from higher general industrial, A&D and EV/HEV sales, partially offset by seasonally lower portable electronics sales. Currency exchange rates favorably impacted total company net sales in the first quarter of 2024 by $1.6 million compared to the prior quarter.

Gross margin decreased to 32.0% from 32.9% in the prior quarter due to unfavorable product mix, partially offset by higher sales volumes.

Selling, general and administrative (SG&A) expenses decreased by $4.3 million from the prior quarter to $47.5 million. The lower SG&A expense was due primarily to a decrease in professional service fees, compensation costs and other administrative expenses.

GAAP operating margin of 5.5% decreased from 14.9% in the prior quarter. Operating margin declined primarily due to a decrease in other operating income, partially offset by lower SG&A expenses. Other operating income was higher in the fourth quarter mainly related to a $24.0 million insurance recovery received in connection with the fire that occurred at the UTIS facility in 2021. Adjusted operating margin of 7.5% increased by 120 basis points versus the prior quarter.

"We are encouraged by the improving demand that we saw in the first quarter, which resulted in sales near the top end of our guidance expectations," stated Colin Gouveia, president and CEO, Rogers. "Aerospace and defense sales were strong in the first quarter and after a prolonged downturn, the outlook for the general industrial market is improving with lower customer inventory levels and positive order trends. We expect overall sales to improve further in the coming quarters, tempered by some markets which continue to face near-term inventory challenges. We remain intently focused on driving improved profitability and cash flow, while also ensuring we are positioned to grow as demand strengthens."

Rogers guided for net sales in the second quarter of $210 million to $220 million.

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