by Rogers Corporation on Aug 09, 2018
Selected quotes from our recent earnings call. Read the corporate financials news release: Rogers Corporation Reports Second Quarter 2018 Results.
In Q2 2018, Rogers delivered revenues of $215 million, compared to $201.4 million in Q2 2017.
Bruce Hoechner, CEO, on Growth Drivers
There continues to be a strong demand that is projected in our key growth drivers of advanced connectivity and advanced mobility. Opportunities for growth in markets such as 5G, EV/HEV, and ADAS are driving our capacity expansion plans. It is a key imperative for Rogers to maintain its market leadership position by ensuring capacity is ready when our customers need it.
In advanced mobility, we are very encouraged by the continued adoption of our silicon nitride materials as automakers continue their race to introduce more EV and HEV models. This shift in the industry bodes well for the PES business, where our ceramic substrates offer high thermal connectivity and reliability. These features are essential for the smaller, more energy-efficient wide-bandgap semiconductors found in EV and HEV applications.
In the area of advanced connectivity, we continue to see signs that the transition to 5G is imminent, with testing and early deployments on the rise in China. For Rogers, 5G represents a much larger opportunity than past generations of wireless infrastructure due to the complexity of the systems and the greater material content they require. ACS holds a solid leadership position in this market, offering differentiated products that meet customer needs for very high frequencies, thermal management and high performance that minimizes crosstalk.
We look forward to capitalizing the large opportunities ahead.
Bruce Hoechner, CEO, on Rogers’ Business Units
Advanced Connectivity Solutions (ACS) achieved second quarter net sales of $76 million, a slight increased over Q2 2017, and sequential growth of 4% over Q1 2018. Revenues were largely driven by applications in aerospace and defense and tenant for 4.5G and 5G wireless structure and ADAS, partially offset by lower demand in portable electronics and wireless 4G LTE power amp applications. The latest independent market analysis indicates 2019 5G base station deployments at roughly 100,000 units, with some experts indicating more. ACS has significant design wins in this space, where base stations require 2x to 4x of Rogers’ content than that of the 4G LTE base stations.
Elastomeric Material Solutions (EMS) net sales of $79 million were relatively flat compared to Q2 2017. Higher demand in portable electronics, consumer, automotive and mass transit applications was offset by lower demand for clean room automation equipment used in OLED display manufacturing. In the second half of the year, we expect continued improvement in the general industrial segment. Additionally, we continue to drive operational synergies across our acquired businesses, including DeWAL, DSP and, more recently, Griswold.
Power Electronics Solutions (PES) delivered another great quarter with net sales of $54 million, a 12% increase over Q2 2018, excluding the impact of currency. Net sales increased due to broad-based demand across markets, including particular strength and electric and hybrid electric vehicles, renewable energy, mass transit and variable frequency drives. We expect the strength we’ve seen in the first half of the year to continue into the third and fourth quarters, driven by exceptionally strong demand for EV/HEV and x-by-wire applications.
Q2 2018 Earnings Call Transcript
Q2 2018 Financial Press Release
Q2 2018 Earnings Call Slides