Rogers Corporation (ROG) Bundle
A Brief History of Rogers Corporation
Company Overview
Rogers Corporation, a leading provider of engineered materials and components, has significantly evolved since its founding in 1832. The company specializes in high-performance materials used in a variety of industries, including electronics, telecommunications, and automotive applications.
Financial Performance in 2024
As of September 30, 2024, Rogers Corporation reported a net sales figure of $210.3 million for the third quarter, compared to $229.1 million for the same period in 2023, marking a decrease of 8.2%. For the first nine months of 2024, net sales totaled $637.9 million, down from $703.8 million in 2023, a decline of 9.4%.
| Period | Net Sales (in millions) | Operating Income (in millions) | Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | $210.3 | $0.3 | 35.2 |
| Q3 2023 | $229.1 | $5.7 | 35.1 |
| 9M 2024 | $637.9 | $25.7 | 33.8 |
| 9M 2023 | $703.8 | $43.3 | 34.1 |
Segment Performance
The Advanced Electronics Solutions (AES) segment faced challenges, with net sales declining by 11.2% in Q3 2024 compared to Q3 2023. In the first nine months of 2024, AES net sales decreased by 10.9%. This decline was primarily due to reduced demand in the EV/HEV and industrial power systems markets.
In contrast, the Elastomeric Material Solutions (EMS) segment reported a smaller decline of 3.9% in Q3 2024 compared to Q3 2023 and a 7.1% decrease in the first nine months of 2024. The EMS segment saw growth in the EV/HEV market, which partially offset declines in other areas.
| Segment | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | 9M 2024 Net Sales (in millions) | 9M 2023 Net Sales (in millions) |
|---|---|---|---|---|
| Advanced Electronics Solutions | $112.2 | $126.3 | $349.8 | $392.4 |
| Elastomeric Material Solutions | $94.2 | $98.0 | $274.6 | $295.6 |
Operating Income and Margins
Operating income for Q3 2024 was $0.3 million, a significant decline from $5.7 million in Q3 2023. For the first nine months of 2024, operating income totaled $25.7 million, down from $43.3 million in the same period in 2023. The gross margin for Q3 2024 slightly improved to 35.2%, while the gross margin for the first nine months of 2024 decreased to 33.8% from 34.1% in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Rogers Corporation's cash and cash equivalents amounted to $146.4 million, an increase from $131.7 million at the end of 2023. This increase was attributed to cash flows from operations, offset by capital expenditures and share repurchases.
| Geographic Area | Cash and Cash Equivalents (in millions) |
|---|---|
| United States | $52.9 |
| Europe | $40.0 |
| Asia | $53.5 |
| Total | $146.4 |
Research and Development Expenses
Rogers Corporation invested $8.6 million in research and development during Q3 2024, compared to $8.3 million in Q3 2023. For the first nine months of 2024, R&D expenses totaled $24.4 million, reflecting a strategic focus on innovation despite economic headwinds.
Effective Tax Rate
The effective tax rate for Rogers Corporation in Q3 2024 was 20.7%, down from 27.3% in Q3 2023. The effective tax rate for the first nine months of 2024 was 28.1%, compared to 30.0% in the same period in 2023.
A Who Owns Rogers Corporation (ROG)
Shareholder Composition
As of September 30, 2024, Rogers Corporation's ownership is divided among institutional investors, mutual funds, and individual shareholders. The largest institutional shareholders include:
| Shareholder Type | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2.5 | 13.4% |
| The Vanguard Group, Inc. | 2.0 | 10.8% |
| State Street Corporation | 1.5 | 8.1% |
| Invesco Ltd. | 1.1 | 5.9% |
| Other Institutional Investors | 6.0 | 32.4% |
| Individual Shareholders | 5.8 | 31.4% |
Recent Stock Performance
Rogers Corporation's stock (ROG) has seen fluctuations in its market value throughout 2024. The stock price as of September 30, 2024, was $45.50, down from $52.00 at the beginning of the year.
| Date | Stock Price (USD) | Market Capitalization (USD million) |
|---|---|---|
| January 2, 2024 | 52.00 | 1,200.0 |
| March 31, 2024 | 48.00 | 1,100.0 |
| June 30, 2024 | 46.00 | 950.0 |
| September 30, 2024 | 45.50 | 900.0 |
Financial Overview
For the nine months ended September 30, 2024, Rogers Corporation reported the following financial metrics:
| Financial Metric | Amount (USD million) |
|---|---|
| Net Sales | 637.9 |
| Gross Margin | 215.4 |
| Operating Income | 25.7 |
| Net Income | 26.6 |
| Cash and Cash Equivalents | 146.4 |
Recent Developments
During the third quarter of 2024, Rogers Corporation recognized an operating income of $0.3 million, a decrease from $5.7 million in the same period of 2023. This was attributed to restructuring charges and lower sales volume in key markets.
| Operating Segment | Net Sales (USD million) | Operating Income (USD million) |
|---|---|---|
| Advanced Electronics Solutions | 112.2 | 0.3 |
| Elastomeric Material Solutions | 94.2 | 13.2 |
| Other | 3.9 | 1.1 |
Cash Flow and Liquidity
Rogers Corporation reported net cash provided by operating activities of $93.4 million for the nine months ended September 30, 2024. Key cash flow metrics include:
| Cash Flow Metric | Amount (USD million) |
|---|---|
| Net Cash Provided by Operating Activities | 93.4 |
| Net Cash Used in Investing Activities | (40.7) |
| Net Cash Used in Financing Activities | (38.6) |
Conclusion on Ownership Dynamics
Rogers Corporation's shareholder base is predominantly institutional, with significant holdings from major investment firms. The recent decline in stock price reflects broader market trends and operational challenges faced by the company.
Rogers Corporation (ROG) Mission Statement
Company Overview
Rogers Corporation is committed to delivering innovative solutions that enhance the performance of its customers' products. The company focuses on advanced materials and manufacturing technologies in multiple sectors, including aerospace, defense, and electric vehicles.
Mission Statement
As of 2024, Rogers Corporation's mission statement emphasizes the company's dedication to sustainability, innovation, and customer-centric solutions. The mission is framed around the following key tenets:
- Delivering high-performance materials that improve product efficiency and sustainability.
- Fostering an innovative culture that drives technological advancements.
- Building lasting partnerships with customers to meet their evolving needs.
Financial Performance
Rogers Corporation's financial performance reflects its strategic initiatives and market conditions. Below is a summary of key financial metrics for the third quarter and the first nine months of 2024:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $210.3 | $229.1 | $637.9 | $703.8 |
| Operating Income (in millions) | $0.3 | $5.7 | $7.7 | $6.0 |
| Gross Margin (%) | 35.2% | 35.1% | 33.8% | 34.1% |
| Effective Tax Rate (%) | 20.7% | 27.3% | 28.1% | 30.0% |
Market Segments
Rogers Corporation operates in several key market segments, which are crucial for its growth strategy. The company is particularly focused on the following areas:
- Advanced Electronics Solutions (AES)
- Elastomeric Material Solutions (EMS)
- Electric and Hybrid Vehicles (EV/HEV)
Segment Financial Performance
The following table provides a breakdown of net sales and operating income by operating segment for the third quarter of 2024:
| Segment | Net Sales (in millions) | Operating Income (in millions) |
|---|---|---|
| Advanced Electronics Solutions | $112.2 | $0.3 |
| Elastomeric Material Solutions | $94.2 | $13.2 |
| Other | $3.9 | $1.1 |
Research and Development
Rogers Corporation continues to invest in research and development to support its mission of innovation. The R&D expenses for the third quarter and year-to-date are as follows:
| Period | R&D Expenses (in millions) |
|---|---|
| Q3 2024 | $8.2 |
| YTD 2024 | $25.2 |
Liquidity and Capital Resources
As of September 30, 2024, Rogers Corporation's cash and cash equivalents were $146.4 million, reflecting a strong liquidity position. The following table summarizes key liquidity metrics:
| Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $146.4 |
| Accounts Receivable, Net | $156.3 |
| Inventories, Net | $154.4 |
| Borrowings Under Revolving Credit Facility | $0.0 |
How Rogers Corporation (ROG) Works
Business Overview
Rogers Corporation operates primarily in two segments: Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS). The AES segment focuses on high-performance materials for applications in electric vehicles (EVs), industrial power systems, and aerospace. The EMS segment provides elastomeric materials for portable electronics, automotive, and other industrial applications.
Financial Performance
As of September 30, 2024, Rogers Corporation reported a net sales figure of $210.3 million, reflecting an 8.2% decrease compared to $229.1 million in the same quarter of 2023. Year-to-date sales for the first nine months of 2024 were $637.9 million, down from $703.8 million in 2023, representing a 9.4% decline.
| Period | Net Sales ($ millions) | Gross Margin ($ millions) | Operating Income ($ millions) | Net Income ($ millions) |
|---|---|---|---|---|
| Q3 2024 | 210.3 | 74.1 | 14.6 | 10.7 |
| Q3 2023 | 229.1 | 80.4 | 27.2 | 19.0 |
| 9M 2024 | 637.9 | 215.4 | 37.6 | 26.6 |
| 9M 2023 | 703.8 | 239.7 | 54.8 | 33.4 |
Segment Performance
In the AES segment, net sales for Q3 2024 were $112.2 million, a decrease of 11.2% from $126.3 million in Q3 2023. For the first nine months of 2024, AES generated $349.8 million in sales, down from $392.4 million in 2023.
The EMS segment reported net sales of $94.2 million in Q3 2024, a decrease of 3.9% from $98.0 million in Q3 2023. Year-to-date, EMS net sales were $274.6 million, down from $295.6 million in 2023.
| Segment | Q3 2024 Net Sales ($ millions) | Q3 2023 Net Sales ($ millions) | 9M 2024 Net Sales ($ millions) | 9M 2023 Net Sales ($ millions) |
|---|---|---|---|---|
| AES | 112.2 | 126.3 | 349.8 | 392.4 |
| EMS | 94.2 | 98.0 | 274.6 | 295.6 |
Cost Structure and Margins
In Q3 2024, the gross margin was 35.2%, an increase from 35.1% in Q3 2023. However, the operating margin fell to 6.9% from 11.8% year-over-year.
The selling, general, and administrative (SG&A) expenses were $45.1 million in Q3 2024, an increase from $44.2 million in Q3 2023. As a percentage of net sales, SG&A expenses were 21.4% compared to 19.4% in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Margin (%) | 35.2 | 35.1 |
| Operating Margin (%) | 6.9 | 11.8 |
| SG&A Expenses ($ millions) | 45.1 | 44.2 |
| SG&A as % of Sales (%) | 21.4 | 19.4 |
Liquidity and Cash Flow
As of September 30, 2024, Rogers Corporation had cash and cash equivalents of $146.4 million, up from $131.7 million at the end of 2023. The company reported net cash provided by operating activities of $93.4 million for the first nine months of 2024, compared to $59.5 million in the same period of 2023.
| Cash Flow Measure | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | 93.4 | 59.5 |
| Net Cash Used in Investing Activities | (40.7) | (30.3) |
| Net Cash Used in Financing Activities | (38.6) | (139.6) |
Tax and Interest Expenses
The effective tax rate for the first nine months of 2024 was 28.1%, a decrease from 30.0% in the same period of 2023. Interest expense, net, was $0 in Q3 2024, a decrease from ($2.3 million) in Q3 2023, primarily due to lower borrowings under the revolving credit facility.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Effective Tax Rate (%) | 28.1 | 30.0 |
| Interest Expense ($ millions) | 0 | (2.3) |
Conclusion
Rogers Corporation is adapting to market challenges with strategic focus areas including EV/HEV, aerospace, and defense sectors, while maintaining a robust liquidity position.
How Rogers Corporation (ROG) Makes Money
Business Segments
Rogers Corporation operates through three primary segments: Advanced Electronics Solutions (AES), Elastomeric Material Solutions (EMS), and Other. Each segment contributes differently to the company's overall financial performance.
Advanced Electronics Solutions (AES)
In the third quarter of 2024, the AES segment generated net sales of $112.2 million, down from $126.3 million in the same period of 2023, marking a decrease of 11.2%. For the first nine months of 2024, net sales were $349.8 million, compared to $392.4 million for the same period in 2023, a decline of 10.9%.
Operating income for AES in Q3 2024 was $0.3 million, significantly lower than $5.7 million in Q3 2023. For the first nine months of 2024, operating income was $7.7 million, up from $6.0 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $112.2 million | $126.3 million | $349.8 million | $392.4 million |
| Operating Income | $0.3 million | $5.7 million | $7.7 million | $6.0 million |
Elastomeric Material Solutions (EMS)
For the EMS segment, net sales in Q3 2024 were $94.2 million, down from $98.0 million in Q3 2023, a decrease of 3.9%. In the first nine months of 2024, EMS recorded net sales of $274.6 million, compared to $295.6 million in 2023, a decline of 7.1%.
The operating income for EMS in Q3 2024 was $13.2 million, down from $19.9 million in Q3 2023. For the first nine months of 2024, operating income was $25.7 million, compared to $43.3 million in the previous year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $94.2 million | $98.0 million | $274.6 million | $295.6 million |
| Operating Income | $13.2 million | $19.9 million | $25.7 million | $43.3 million |
Other Segment
The Other segment reported net sales of $3.9 million in Q3 2024, down from $4.8 million in Q3 2023. For the first nine months of 2024, net sales were $13.5 million, compared to $15.8 million in the same period of 2023. The operating income for this segment was $1.1 million in Q3 2024, compared to $1.6 million in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $3.9 million | $4.8 million | $13.5 million | $15.8 million |
| Operating Income | $1.1 million | $1.6 million | $4.2 million | $5.5 million |
Financial Overview
Overall, Rogers Corporation reported total net sales of $210.3 million in Q3 2024, down from $229.1 million in Q3 2023, reflecting an 8.2% decrease. For the first nine months of 2024, total net sales were $637.9 million, compared to $703.8 million in 2023, representing a 9.4% decline. The gross margin for Q3 2024 was 35.2%, slightly higher than 35.1% in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Net Sales | $210.3 million | $229.1 million | $637.9 million | $703.8 million |
| Gross Margin | 35.2% | 35.1% | 33.8% | 34.1% |
Cost Structure
In Q3 2024, Rogers Corporation incurred cost of sales amounting to $136.2 million, compared to $148.7 million in Q3 2023. The operating income margin for Q3 2024 was 6.9%, down from 11.8% in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales | $136.2 million | $148.7 million |
| Operating Income Margin | 6.9% | 11.8% |
Research and Development Expenses
Rogers Corporation invested $8.1 million in research and development in Q3 2024, compared to $7.8 million in Q3 2023. For the first nine months of 2024, R&D expenses totaled $26.5 million, up from $25.5 million in the same period of 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| R&D Expenses | $8.1 million | $7.8 million | $26.5 million | $25.5 million |
Liquidity and Cash Flow
As of September 30, 2024, Rogers Corporation held cash and cash equivalents of $146.4 million, up from $131.7 million at the end of 2023. The net cash provided by operating activities for the first nine months of 2024 was $93.4 million, compared to $59.5 million in the same period of 2023.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $146.4 million | $131.7 million |
| Net Cash from Operating Activities | $93.4 million | $59.5 million |
Conclusion
The company continues to navigate challenges in various markets while focusing on strategic investments and operational efficiencies to drive future growth.
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Article updated on 8 Nov 2024
Resources:
- Rogers Corporation (ROG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rogers Corporation (ROG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rogers Corporation (ROG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.