Rogers Corporation (NYSE:ROG) (“Rogers” or the “Company”) today announced third quarter 2012 net sales of $130.2 million and earnings per share from continuing operations of $3.46 per diluted share, which includes net favorable special adjustments of $2.77 per diluted share. Excluding these special adjustments, non-GAAP income from continuing operations was $0.69 per diluted share. Net sales and non-GAAP income from continuing operations were within the Company’s previously announced third quarter guidance ranges of $127 to $135 million in net sales with non-GAAP earnings from continuing operations of $0.60 to $0.70 per diluted share. Third quarter 2011 net sales were $147.3 million with income from continuing operations of $0.93 per diluted share, which included net favorable special adjustments of $0.04 per diluted share.
During the third quarter of 2012, Rogers benefited from one-time net discrete tax items of $50.0 million, the most significant of which was the reversal of a valuation allowance on the majority of the Company’s U.S. deferred tax assets. The Company also recorded net charges of $1.0 million related to the closure of its manufacturing facility in Bremen, Germany, $1.3 million in charges related to a previously disclosed pension payout to its former Chief Executive Officer, and $0.5 million of other restructuring related charges. A reconciliation of the non-GAAP to GAAP operating results discussed in the preceding paragraph is included at the end of this release.
Business Segment Discussion
High Performance Foams
In the third quarter of 2012, High Performance Foams reported net sales of $48.0 million, a decrease of 3.5% compared to the third quarter 2011 all-time record sales of $49.8 million. Sales were down slightly in this year’s third quarter primarily due to a decline in sales of PORON® foam into tablet computer applications due to inventory in the supply chain during model changeover. This was partially offset by continued strong demand for PORON® XRD® extreme impact protection materials for protective cases for smart phones and tablets, as well as sports impact apparel. This segment also saw an increase in sales into general industrial applications, including automotive and hybrid electric vehicles.