Published by Rogers Corporation

Selected quotes from our recent earnings call. Read the corporate financials news release: Rogers Corporation Reports First Quarter 2019 Results.

In the first quarter of 2019, Rogers achieved all-time record quarterly net sales of $240 million, an increase of 8% over Q4 2018.

Bruce Hoechner, CEO, on Growth Drivers

Advanced Connectivity

In our Advanced Connectivity markets, we are optimistic about the increasing demand for 5G wireless infrastructure applications that is driving growth in advanced connectivity. Our newly developed products, specifically engineered to enhance 5G performance particularly in massive MIMO antenna systems have received an enthusiastic response from our customers. Market indicators support the previously mentioned mobile experts’ view that 5G base station shipments in 2019 are expected to be strong and could exceed 200,000 units.

Advanced Mobility

Adding to the good news for Rogers regarding the strong demand growth in our advanced connectivity markets, the growth outlook remains robust for advanced mobility applications. We continue to work closely with a broad range of customers to support current demand and develop products that will enable the performance of emerging technologies. We are seeing substantial opportunities in areas that include the next generation of 77 gigahertz ADAS radar as well as advanced performance silicon nitride substrates for EV power modules. As the auto industry moves towards EV/HEV and x-by-wire systems, the opportunity for Rogers expands through both increased market penetration and higher content per vehicle. Looking at the ADAS market, automakers have essentially worked through the new emissions protocol in Europe. Demand is being somewhat tempered by a weakening global automotive market. However, market penetration of ADAS systems is still progressing well.

Bruce Hoechner, CEO, on Rogers’ Business Units

Advanced Connectivity Solutions (ACS) net sales were $81 million, an increase of 11% over Q4 2018. These results were driven primarily by demand for 5G and 4G wireless infrastructure and ADAS applications. As mentioned in the previous slides, we anticipate substantial growth in 5G revenues as China deployments ramped throughout 2019 and into 2020. In addition, we expect 4G to maintain its current pace through 2019. We also expect to see steady growth in demand for ADAS applications for the balance of the year. Over the last 2 years, we have significantly increased ACS capacity positioning us well to meet current demand. In addition, we have invested in multi-site qualifications and addressed several production bottlenecks to improve efficiency in the ACS operations. Given the optimistic outlook in ACS, we are adding substantially more capacity in 2019 and 2020 to meet this projected demand for advanced materials in our key market of 5G and ADAS.M.

Power Electronics Solutions (PES) achieved net sales of $60 million in Q1 2019, an increase of 5% over Q4 2018. The sequential improvement in PES results was due to demand for applications for EV/HEV and renewable energy. As previously discussed, market tailwinds in EV/HEV are favorable. The PES business has experienced excellent market acceptance and tremendous growth for its new generation silicon nitride materials for wide-band gap semiconductor packaging. As I mentioned, we have comprehensive actions ongoing to address our commercial and operational issues and we are continuing to execute on our capacity expansion projects to position the PES business to take advantage of these great market opportunities.

Elastomeric Material Solutions (EMS) delivered net sales of $93 million, an increase of 5% over Q4 2018. Results were driven by double-digit growth in EV/HEV and mass transit applications. The business also benefited from solid sequential growth in the general industrial market. EMS continues to gain significant design wins in battery pad applications and is expanding its product portfolio. One example of this is the new PORON® EVextend material, which enables enhanced lithium-ion battery life. For the balance of the year, we expect solid growth in general industrial and portable electronics with higher growth in EV/HEV applications as this market expands globally.

Investor Relations

Published on May 02, 2019

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