by Rogers Corporation on Aug 09, 2017
Selected quotes from our recent earnings call. Read the corporate financials news release: Rogers Corporation Reports Second Quarter 2017 Results
In Q2 2017, Rogers achieved another quarter of exceptional net sales and earnings. Net sales were $201 million, an increase of 28% over Q2 2016. This robust performance was driven by double-digit organic growth in each of our three business units. In addition, our recently acquired businesses, DeWal and Diversified Silicone Products (DSP), continue to perform very well. Topline performance combined with our continued focus on operational improvements resulted in an outstanding profit increase.
Bruce Hoechner, CEO, on Innovation Leadership
During the past several years, Rogers has intentionally transformed into a more diverse company by expanding our portfolio through new product innovation, driving geographic penetration and executing on prudent acquisitions. This diversification has helped us perform consistently and deliver steady growth.
A good example of this is in the Advanced Connectivity Solutions (ACS) business. As the telecom market moves towards 4.5G and 5G technologies, this has moderated the 4G/LTE build-out. ACS has been able to maintain growth by taking advantage of other market opportunities, such as automotive safety and aerospace and defense.
Bruce Hoechner, CEO, on Growth Drivers
Our market driven focus is helping us advance our position in the markets we serve. One example is our emphasis on developing next generation technology to meet growing demand for wireless data. In e-Mobility, which is a key growth engine for our Power Electronics Solutions (PES) business, consumer demand and a global push to reduce CO2 emissions are contributing to growth for electric vehicle (EV) and hybrid electric vehicle (HEV) products. We are making additional investments to build upon our innovation leadership by adding a third innovation center in Chandler, Arizona which will focus on antenna systems to enhance 4.5G and 5G performance and other promising technologies.
We hold significant market positions in our two key growth areas of advanced mobility and advanced connectivity, which are aligned with our technology portfolio, marketing initiatives, and new product pipeline.
Bruce Hoechner, CEO, on Rogers’ Business Units
Advanced Connectivity Solutions (ACS) achieved second quarter net sales of $74 million, an 11% increase over Q2 2016. Growth in applications for automotive Advanced Driver Assistance Systems (ADAS) and aerospace and defense were partially offset by lower demand for wireless 4G/LTE applications. As we look ahead, we see strong indicators that 5G is gaining traction with the deployment of fixed wireless access. Several major operators are pursuing plans to put high-speed Internet into the home to compete with existing cable and fiber-to-home applications, often referred to as The Last Mile.
We are also well positioned to meet the needs of advanced automotive safety systems as they expand into mass market models. ACS holds a leading market position with a portfolio that spans the full range of customer requirements for short, mid, and long-range radar sensors.
The Elastomeric Material Solutions (EMS) team achieved all time record quarterly sales of $78 million, a 70% increase over Q2 2016. The EMS focus on geographic expansion and market penetration is paying off with healthy demand for general industrial applications across all regions. In portable electronics, we have benefited from a large increase in back pad wins. Our automotive sector is also growing with greater adoption of our sealing and vibration management solutions across a number of leading EV and HEV OEM’s and further penetration of our unique water resistant PORON® foam material into automotive sealing applications.
Power Electronics Solutions (PES) achieved strong Q2 net sales of $44 million, a 14% increase over to 2016. This growth was driven by broad-based demand across all markets, including EV and HEVs, laser diode coolers, renewable energy, and variable frequency motor drives. We continue to see impressive growth in the e-Mobility market, where consumer demand for high performance electric vehicles and government mandates are driving an increase in EV, HEV sales.
Q2 2017 Earnings Call Full Transcript
Q2 2017 Financials Press Release
Q2 2017 Earnings Call Slides