Rogers Corp. (ROG) Revises Q2 Outlook; EPS Comes in Below Expectations

Rogers Corp. (NYSE: ROG) announced revised guidance for its fiscal second quarter ended June 30, 2014. Rogers now expects that it will report all-time quarterly record net sales from continuing operations of $153.5 million for the period as compared to the April 29, 2014 guidance of $143 to $148 million. Earnings per diluted share from continuing operations for the second quarter 2014 are expected to be approximately $0.55 to $0.58 compared to the previous guidance of $0.68 to $0.76 per diluted share.

*** The Street sees Q2 revs of $146 million and EPS of $0.74.

These revised unaudited earnings estimates are primarily the result of increased selling, general and administrative (SG&A) expenses of approximately $6 to $7 million and a higher than anticipated effective tax rate. The increase in SG&A expenses was driven by incentive compensation accruals and unusually high spending on internal process improvement projects, business development investments, Chief Financial Officer transition expenses, and other severance costs. The higher effective tax rate was the result of a change in the geographic profit mix to higher tax rate jurisdictions.

Bruce D. Hoechner, President and CEO commented, “I am very pleased with our top line performance reaching all-time quarterly record levels for the Company during the quarter and the continued strength of our gross margins. With respect to the increased expenses noted above, we have taken significant steps within the Company to improve our budgetary planning capabilities. The underlying fundamentals of the business remain solid as we continue to benefit from tailwinds in our core markets that we believe offer continued opportunities for profitable growth as we move forward.”

The Company plans to release results for its 2014 second quarter after the close of trading on Tuesday, July 29, 2014. A copy of the announcement will be available on the Rogers website at www.rogerscorp.com/news.

All interested parties are invited to participate in Rogers’ quarterly teleconference to be held on Wednesday, July 30 at 9:00 am ET. Bruce D. Hoechner, President and CEO, and members of senior management will review the results and respond to questions.

To participate in the teleconference please call 1-800-574-8929 toll-free in the U.S. or 1-973-935-8524 from outside the U.S. There is no pass code for the teleconference.

For interested parties who do not wish to ask questions, the call is being webcast live by Thomson Reuters and may be accessed through a link on the Rogers website at www.rogerscorp.com/ir.

A slide presentation will be made available prior to the start of the call. The slide presentation may be accessed on the Rogers Corporation website under the Investor Relations section.

If you are unable to participate during the live teleconference, the call will be archived until Wednesday, August 6, 2014. The audio archive can be accessed by calling 1-855-859-2056 in the U.S. or 1-404-537-3406 from outside the U.S. The pass code for the audio replay is 60797684. To access the archived audio online, please visit the Investor Relations section of the Rogers website and select the webcast link.

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