Rogers Announces Financial Results for the 2019 Q3 with Net Sales of $221.8 Million

Rogers Corporation has announced financial results for the 2019 third quarter. The Company reported 2019 third-quarter net sales of $221.8 million, an 8.7% decrease compared to 2019 second-quarter net sales of $242.9 million and a 2.2% decrease compared to 2018 third-quarter net sales of $226.9 million. Net sales for the 2019 third quarter were below the Company's previously announced guidance range of $225 to $235 million. Currency exchange rates unfavorably impacted the 2019 third-quarter net sales by $1.6 million compared to 2019 second-quarter net sales, and by $4.0 million compared to 2018 third-quarter net sales.

Third-quarter 2019 net income was $23.4 million compared to $24.3 million in the second quarter of 2019 and $19.7 million in the third quarter of 2018. Earnings for 2019 third quarter were $1.25 per diluted share compared to $1.30 per diluted share in the second quarter of 2019 and $1.06 per diluted share in the third quarter of 2018. Earnings per diluted share were above the top end of the Company's previously announced guidance range of $1.05 to $1.20. On an adjusted basis, earnings were $1.51 per diluted share for the 2019 third quarter compared to adjusted earnings of $1.64 per diluted share in the second quarter of 2019 and $1.42 per diluted share in the third quarter of 2018. Adjusted earnings exceeded the high end of the Company's previously announced guidance range of $1.30 to $1.45 per diluted share.

Adjusted EBITDA was $47.4 million, or 21.4% of net sales, for the third quarter of 2019 compared to $53.1 million, or 21.9% of net sales, reported in the second quarter of 2019 and $50.2 million, or 22.1% of net sales, reported in the third quarter of 2018.

Gross margin was 35.6% in the third quarter of 2019 compared to 35.3% in the second quarter of 2019 and 34.9% in the third quarter of 2018. Third-quarter 2019 gross margin was within the Company's previously announced guidance range of 35% to 36%. The operating margin was 13.5% in the third quarter of 2019 compared to 13.7% in the second quarter of 2019 and 13.1% in the third quarter of 2018. The adjusted operating margin was 16.3% in the third quarter of 2019 compared to 17.2% in the second quarter of 2019 and 17.0% in the third quarter of 2018.

The solid Q3 earnings resulted from a favorable product mix, gross margin improvement efforts and efficient management of operating expenses. For the remainder of the year, Rogers team anticipate continued weakness in the industrial and automotive markets and a pause in China 5G deployments before the expected next wave of deployments in the first half of 2020.

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