Other
Other reported 2019 first
quarter net sales of $6.8 million, a 24.1% increase compared to 2018
fourth quarter net sales of $5.4 million and a 26.0% increase compared
to 2018 first quarter net sales of $5.4 million. The sequential increase
in 2019 first quarter net sales was due to a last-time buy in the Durel
business.
Balance sheet and other highlights
Cash position
Rogers ended the
first quarter of 2019 with cash and cash equivalents of $162.1 million,
a decrease of $5.6 million from $167.7 million at December 31, 2018. The
primary drivers of the lower cash balance were capital expenditures of
$12.6 million and repayment of debt principal of $5.0 million.
Effective tax rate
Rogers'
effective tax rate was 14.2% for the first quarter of 2019, compared to
3.6% for the fourth quarter of 2018. The lower effective tax rate for
the fourth quarter of 2018 was due primarily to the implementation of
tax strategies which significantly lowered our foreign taxes and
facilitated the reversal of reserves associated with uncertain tax
positions. The first quarter effective tax rate was lower than our
expected tax rate of 27% to 28% due to a change in the forecasted
geographic mix of pretax income as well as certain discrete tax benefits
realized in the first quarter. The Company expects the 2019 effective
tax rate to be 25% to 26% before any discrete tax items.
Financial outlook
Rogers guides
its 2019 second quarter net sales to a range of $240 to $250 million and
gross margin to a range of 35% to 36%. Rogers guides its 2019 second
quarter earnings to a range of $1.16 to $1.31 per diluted share and
adjusted earnings to a range of $1.47 to $1.62 per diluted share.
For the full year 2019, Rogers expects capital expenditures to be in a range of $50 to $60 million.
About Rogers Corporation
Rogers
Corporation (NYSE:
ROG) is a global leader in engineered materials to
power, protect, and connect our world. With more than 180 years of
materials science experience, Rogers delivers high-performance solutions
that enable clean energy, internet connectivity, and safety and
protection applications, as well as other technologies where reliability
is critical. Rogers delivers Power Electronics Solutions for
energy-efficient motor drives, e-Mobility and renewable energy;
Elastomeric Material Solutions for sealing, vibration management and
impact protection in mobile devices, transportation interiors,
industrial equipment and performance apparel; and Advanced Connectivity
Solutions for wireless infrastructure, automotive safety and radar
systems. Headquartered in Arizona (USA), Rogers operates manufacturing
facilities in the United States, China, Germany, Belgium, Hungary, and
South Korea, with joint ventures and sales offices worldwide.
Safe Harbor Statement
This
release contains forward-looking statements, which concern our plans,
objectives, outlook, goals, strategies, future events, future net sales
or performance, capital expenditures, future restructuring, plans or
intentions relating to expansions, business trends and other information
that is not historical information. All forward-looking statements are
based upon information available to us on the date of this release and
are subject to risks, uncertainties and other factors, many of which are
outside of our control, which could cause actual results to differ
materially from the results discussed in the forward-looking statements.
Risks and uncertainties that could cause such results to differ include:
failure to capitalize on, volatility within, or other adverse changes
with respect to the Company's growth drivers, including advanced
mobility and advanced connectivity, such as delays in adoption or
implementation of new technologies; uncertain business, economic and
political conditions in the United States and abroad, particularly in
China, South Korea, Germany, Hungary and Belgium, where we maintain
significant manufacturing, sales or administrative operations; the
ongoing trade policy dispute between the United States and China, as
well as adverse changes in trade policy, tariff regulation or other
trade restrictions; fluctuations in foreign currency exchange rates; the
results of our research and development efforts; adverse competitive
developments; business development transactions and related integration
considerations, including failure to realize, or delays in the
realization of anticipated benefits of such transactions; the outcome of
ongoing and future litigation, including our asbestos-related product
liability litigation; inability to obtain raw materials, including
commodities, from single or limited source suppliers in a timely and
cost effective manner; uncertainties with regard to the timing, expense
and cash outlays associated with the termination and settlement of the
Rogers Corporation Defined Benefit Pension Plan; and changes in laws and
regulations applicable to our business. For additional information about
the risks, uncertainties and other factors that may affect our business,
please see our most recent annual report on Form 10-K and any subsequent
reports filed with the Securities and Exchange Commission, including
quarterly reports on Form 10-Q. Rogers Corporation assumes no
responsibility to update any forward-looking statements contained herein
except as required by law.
Conference call and additional information
A conference call to discuss 2019 first quarter results will take place today, Tuesday, April 30, 2019 at 5pm ET.
A live webcast and slide presentation will be available under the
investors section of
www.rogerscorp.com/ir .