Rogers Corporation has recently released its 10-Q report, providing a detailed look into its operations and financial performance. The company engages in the design, development, manufacture, and sale of engineered materials and components worldwide, operating through Advanced Electronics Solutions (AES), Elastomeric Material Solutions (EMS), and Other segments. The AES segment offers circuit materials, ceramic substrate materials, busbars, and cooling solutions for applications in electric and hybrid electric vehicles (EV/HEV), wireless infrastructure, automotive, renewable energy, aerospace and defense, mass transit, industrial, connected devices, and wired infrastructure. The EMS segment provides engineered material solutions, including polyurethane and silicone materials used in cushioning, gasketing, sealing, and vibration management applications; customized silicones used in flex heater and semiconductor thermal applications; and polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in various applications. The Other segment provides elastomer components and elastomer floats for level sensing in fuel tanks, motors, and storage tanks for applications in the general industrial and automotive markets. The company was founded in 1832 and is headquartered in Chandler, Arizona.
In the 10-Q report, under Item 2, "Management’s Discussion and Analysis of Results of Operations and Financial Position," Rogers Corporation outlined its executive summary and key highlights. In the third quarter of 2024, the company reported a 8.2% decrease in net sales to $210.3 million compared to the same period in 2023. The gross margin increased by approximately 10 basis points to 35.2% from 35.1%, and the operating margin decreased by approximately 490 basis points to 6.9% from 11.8%. The company also made $30.0 million of discretionary principal payments on its revolving credit facility in the first quarter of 2024. Additionally, restructuring charges of $5.9 million were recognized in the third quarter of 2024 in connection to the manufacturing footprint consolidation plan expected to be completed in the second half of 2025, and restructuring charges of $0.4 million were recognized in connection to the plan to exit the Burlington, Massachusetts Innovation Center facility, expected to be completed by the end of 2024.
The report also includes selected operations data expressed as a percentage of net sales for the three and nine months ended September 30, 2024, and September 30, 2023. The net sales decreased by 8.2% in the third quarter of 2024 compared to the third quarter of 2023, with the AES and EMS operating segments reporting net sales decreases of 11.2% and 3.9%, respectively. The gross margin as a percentage of net sales increased approximately 10 basis points to 35.2% in the third quarter of 2024 compared to 35.1% in the third quarter of 2023. For the first nine months of 2024, the net sales decreased by 9.4% compared to the first nine months of 2023, with the AES and EMS operating segments reporting net sales decreases of 10.9% and 7.1%, respectively. The gross margin as a percentage of net sales decreased approximately 30 basis points to 33.8% in the first nine months of 2024 compared to 34.1% in the first nine months of 2023.
The report also provides a breakdown of selling, general and administrative (SG&A) expenses, which increased by 2.0% in the third quarter of 2024 from the third quarter of 2023, primarily due to various factors, including an increase in software costs and recruiting, relocation, and training expenses. However, SG&A expenses decreased by 4.7% in the first nine months of 2024 from the first nine months of 2023, primarily due to a decrease in professional services expense and other factors.
The 10-Q report provides a comprehensive view of Rogers Corporation's financial performance, offering insights into its net sales, gross margin, and SG&A expenses, providing stakeholders with a detailed understanding of the company's operations. Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $100.34. For more information, read the company's full 10-Q submission here.
