by Rogers Corporation on Nov 16, 2017
Selected quotes from our recent earnings call.Read the corporate financials news release: Rogers Corporation Reports Third Quarter 2017 Results
In Q3 2017, Rogers achieved all-time record net sales and record third quarter earnings. Net sales were $207 million, an increase of 25% over Q3 2016. Our results confirm that we have implemented a winning approach and we are clearly benefiting from our solid execution.
Over the past several years, Rogers has greatly expanded, diversified and improved the performance of our business portfolio through new product innovation; thoughtfully identified, well-integrated acquisitions; increased geographic penetration; and enhanced operational execution. Today, our products play a vital role in many exciting advanced mobility and advanced connectivity applications, such as Advanced Driver Assistance Systems or ADAS, electric and hybrid electric vehicles or EV/HEV, and the latest generation of high-performance wireless networks. These rapidly emerging markets play well to Rogers’ strengths, putting us in a great position to capitalize on the significant growth opportunity.
Bruce Hoechner, CEO, on Innovation Leadership & Growth Drivers
Our focus on market-driven innovation is helping us advance our position in a number of rapidly growing areas. One example is our Power Electronics Solutions (PES) business, where we are seeing continued adoption of our silicon nitride substrates for wide bandgap semiconductors. These products offer high thermal connectivity and reliability, which are essential for EV/HEV applications.
We view two growth drivers as key priorities: advanced mobility and advanced connectivity. These categories are aligned with the investments we are making in our technology portfolio, marketing and innovation initiatives.
In advanced mobility applications, our growth is driven by mission-critical products for the EV/HEV market as well as ADAS. In advanced connectivity, we expect future growth to come from the 5G infrastructure buildout where industry sources cite new developments on the horizon.
Bruce Hoechner, CEO, on Rogers’ Business Units
Advanced Connectivity Solutions (ACS) achieved third quarter net sales of $73 million, an 11% increase over Q3 2016. Growth was driven by applications for ADAS, aerospace and defense and 4G LTE infrastructure. During Q3, we saw a rebound in demand for both base station power amps and antennas for wireless 4G LTE applications. We are optimistic about the accelerated rollout of 4.5G and 5G, where service providers are reporting that deployments originally scheduled for the 2020 time frame are moving to late 2018 and early 2019. ADAS is another exciting high-growth area for ACS. Our portfolio supports the full spectrum of requirements for short-, mid-, and long-term sensors for features like blind spot detection and adaptive cruise control. We will continue to focus on introducing new innovative technologies to meet customer and market demand.
The Elastomeric Material Solutions (EMS) team delivered all-time record quarterly net sales of $82 million, an increase of 51% over Q3 2016. We saw particular strength in portable electronics and general industrial applications. We continue to broaden our portfolio of solutions with new design wins and applications, such as the flexible flat cable harness for clean room manufacturing equipment. In addition, revenue from portable electronics has improved, driven by a focus on new designs at many global and regional OEMs where our PORON® polyurethane has won new design wins in a wide variety of sealing applications. We are also accelerating growth in EMS by aggressively pursuing general industrial opportunities.
Power Electronics Solutions (PES) achieved third quarter net sales of $46 million, an increase of 17% over Q3 2016. These results were driven by double-digit growth in applications for renewable energy, e-mobility, and laser diode coolers. As we look ahead in PES, we will maintain focus on e-mobility applications, ranging from electric power steering and regenerative braking to EV/HEV. We are looking at significant growth in demand for these applications, and our leading PES technologies have us well positioned to capitalize in the opportunities that lie ahead.