This may be a indication of Hutch doing better with their TSA offering.
Rogers Reports Record Sales, Profits, and Earnings Per Share for the First Quarter
ROGERS, Conn., April 16 /PRNewswire/ -- Rogers Corporation (Amex: ROG - news) reports sales, profits and earnings per share for the first three months of 1998 were the highest for any quarter in the company's history.
Sales of $58 million were up 32% over the first quarter last year. Combined Sales, which include one half of the sales from two, 50% owned joint ventures, grew 27% to $66 million for the quarter. Over 40% of the sales increase for the quarter was attributable to sales by Induflex, the European flexible laminates business Rogers acquired at the end of the third quarter last year, and sales of a customized FLEX-I-MID(R) material to Hutchinson Technology Incorporated [Nasdaq:HTCH - news]. The year 1998 will be a 53-week accounting period for Rogers. As a result, the first quarter of 1998 consisted of 14 weeks compared with the normal 13 weeks last year.
Compared with the first quarter last year, before tax profits of $6.3 million were up 13%, and net income of $4.5 million, after a slightly higher tax rate, increased 10%. Diluted earnings per share for the quarter were $.56, up from $.52 in the first three months of 1997. The currency exchange rate for the strengthening U.S. dollar had a negative impact on both sales and profits.
The 24% growth in operating profit for the quarter, although substantial, fell short of the percentage increase in sales for several reasons. Sales of the customized material to Hutchinson, produced for Rogers by Mitsui Chemical in Japan, are increasingly significant, but carry a lower margin compared with products that Rogers manufactures. The Bisco silicone foam business acquired at the beginning of 1997, and Induflex, are both making progress but are not yet fully assimilated into Rogers operations, or as profitable as Rogers anticipates they will become. Finally, there was a general softness in demand for all products from Southeast Asia.
Rogers INOAC Corporation (RIC), the joint venture with INOAC Corporation, lost a major customer in the disk drive industry and is working to replace this business. Durel Corporation, the joint venture with 3M, is making a difficult transition to serving wireless communication markets. However, Durel made progress and ended the quarter with significant improvement compared with the last quarter of 1997.
Walter E. Boomer, Rogers President and C.E.O., commented, ''We are moving quickly to develop the internal organization, information systems, and equipment capabilities that will support our drive to become the first choice of our customers worldwide. Investments in capital equipment topped $7 million for the first quarter, a steep climb from the $3 million invested during the first quarter of 1997. The overall benefit of these additions, combined with the Bisco and Induflex acquisitions, is expected to be a major, positive contribution to Rogers future growth.''
At the Microwave Materials Division, sales and profits continue to improve as Rogers successfully targets commercial high frequency applications in wireless communication. The introduction of Rogers Express(TM) service, a next day shipping policy for some standard products, has been well received. The Division has also improved its production yields, and is doing a better job of pleasing customers with on-time delivery. The current, major expansion project is on track.
The Circuit Materials Division experienced a softer computer market in the first quarter, slowing sales of traditional flexible circuit materials. Rogers expects this market to rebound as the year progresses.
In the High Performance Elastomers Division, continued investments in people and capacity have resulted in improved service to customers, better operating metrics, and higher sales. A new application for NITROPHYLa floats for sensing fuel level in propane tanks grew more rapidly than planned, contributing to substantial sales growth at the Elastomer Components Unit. Sales of domestically manufactured PORON(R) urethane materials continued their upward climb. The completed expansion of the Woodstock, CT, warehouse and plant has enabled improvements in customer service, while the addition of a third PORON production line is proceeding on schedule.
Sales and operating performance of the moldable phenolic composites business are both improving and benefiting from the major capital investment made last year to expand capacity.
In Europe, Rogers is adding a microwave materials production facility, and expanding the power distribution bus bar production capability. Both projects are on schedule. All of Rogers core products are now stocked in Europe.
Europe continues to be a bright spot for sales growth, showing a 37% increase over the first quarter of last year, even when sales from the recently acquired Induflex business are not included. Furthermore, the strength of the U.S. dollar dampened the reported European sales growth. Stated in local currency, Rogers European sales growth was actually 57%.
Boomer concluded, ''As we intended, the year 1998 opens as one of transition for Rogers. There are expansions underway in almost every division, and we are making significant investments for the future throughout the Corporation. Rogers will be a force to contend with in every market we enter''.
Safe Harbor Statements in this news release that are not strictly historical are ''forward-looking'' statements which should be considered as subject to the many uncertainties that exist in the company's operations and environment. These uncertainties, which include economic conditions, market demand and pricing, competitive and cost factors, and the like, are incorporated by reference in the Rogers Corporation 1997 Form 10-K filed with the Securities and Exchange Commission. Such factors could cause actual results to differ materially from those in the forward-looking statements.
Rogers Corporation manufactures and markets specialty materials and components worldwide, for targeted applications in the communications, computer, imaging, consumer, and transportation markets. For published financial reports, please contact Rogers at:
(FINANCIAL STATEMENTS FOLLOW)
Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
Quarters Ended
April 5, 1998 March 30, 1997
(14 weeks) (13 weeks)
Net Sales $58,313 $44,340
Costs and Expenses:
Cost of Sales 42,233 31,266
Selling and Administrative 7,272 5,610
Research and Development 2,611 2,451
Total Costs and Expenses
(Including Depreciation of:
1998 - $2,236; 1997 - $1,933) 52,116 39,327
Operating Income 6,197 5,013
Other Income less Other Charges(148) 414
Interest Income, Net 231 107
Income Before Income Taxes 6,280 5,534
Income Taxes 1,821 1,494
Net Income $4,459 $4,040
Net Income Per Share:
Basic $.59 $0.54
Diluted $.56 $0.52
Shares Used in Computing:
Basic 7,586 7,422
Diluted 7,960 7,740
The Company operates on a 52/53 week fiscal year. 1998 is a 53 week year
and the first quarter includes 14 weeks.
These statements are subject to year-end audit.
Consolidated Balance Sheets (In Thousands)
April 5, 1998 December 28, 1997
ASSETS
Current Assets:
Cash and Cash Equivalents $14,263 $18,791
Marketable Securities 3,022 2,764
Accounts Receivable, Net 32,825 28,658
Inventories 22,650 21,585
Assets Held for Sale, Net 5,158 5,158
Other Current Assets 2,550 2,527
Total Current Assets 80,468 79,483
Property, Plant and
Equipment, Net 57,280 52,201
Investment in Unconsolidated
Joint Venture 5,052 5,373
Pension Asset 4,731 4,731
Goodwill and Other Intangible
Assets, Net 14,407 14,500
Other Assets 2,143 2,152
Total Assets $164,081 $158,440
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $16,399 $16,771
Current Maturities of
Long-Term Debt 600 600
Accrued Employee Benefits and
Compensation 7,517 8,098
Other Current Liabilities 10,761 8,514
Total Current Liabilities 35,277 33,983
Long-Term Debt, less Current
Maturities 13,660 13,660
Noncurrent Deferred Income Taxes2,258 2,311
Noncurrent Pension Liability 3,901 3,900
Noncurrent Retiree Health Care and
Life Insurance Benefits 6,277 6,277
Other Long-Term Liabilities 4,184 3,931
Shareholders' Equity 98,524 94,378
Total Liabilities and
Shareholders' Equity $164,081 $158,440
These statements are subject to year-end audit.
SOURCE: Rogers Corporation |
