Rogers streamlining operations, posts elastomer sales gains
Revenues up on acquisition of Silicone Engineering and increased demand from general industrial and EV markets
Chandler, Arizona – Rogers Corp. has announced a series of actions to improve its cost structure, streamline operations and improve profitability, following a mixed business performance in 2022.
In a statement 16 Feb, Rogers said it was divesting a “non-core, low-margin, natural rubber product line” within its Elastomeric Material Solutions (EMS) business unit by the end of the first quarter.
The US materials group recorded a 'primarily non-cash charge' of $27 million in the fourth quarter of 2022 in relation to the transaction. Annual revenues from the product line were $18 million.
For the group as a whole, Rogers reported a 4.1% year-on-year increase in 2022 net sales to $971.2 million, with the EMS business unit contributing $420 million – up 11% on the prior-year figure.
Gross margin was 33.1% compared to 37.4% in 2021, reflecting "unfavorable factory utilisation, lower manufacturing yields and higher raw materials and freight costs."
SG&A expenses increased by $25.7 million from the prior year to $218.8 million, largely due to higher costs associated with the terminated DuPont merger.
Rogers linked the sales gains at its elastomers unit to its 2021 acquisition of UK-based Silicone Engineering and higher general industrial and electric vehicle (EV) markets sales.
These positive effects were only partially offset by lower sales to the portable electronics and consumer markets.
By contrast, sales fell marginally at Rogers’ other main division Advanced Electronics Solutions, to $534.4 million.
At AES, higher EV sales were offset by declines in wireless infrastructure, defence and ‘clean’ energy markets.
To improve overall profitability, Rogers is carrying out “targeted reductions” in corporate and manufacturing costs, including cutting its global workforce by 7%.
“As we navigate the current challenging market environment, Rogers remains committed to taking decisive action to lower costs and improve profitability,” said Colin Gouveia, CEO and president.