by Rogers Corporation on Nov 05, 2018
Selected quotes from our recent earnings call. Read the corporate financials news release: Rogers Corporation Reports Third Quarter 2018 Results.
In Q3 2018, Rogers achieved record revenues of $227 million, compared to $201.4 million in Q3 2017. Sales were at the midpoint of our previously released guidance.
In advanced mobility, we are seeing a significant increase in demand for EV/HEV applications as automakers continue their race to introduce more EV and HEV models, which gives us great optimism around demand. In ADAS, we expect to see continued penetration of our materials as automotive safety features become standard in mass market models. We continue to work closely with a broad range of customers to support current demand and develop products that will enable the performance of emerging technologies. We are seeing substantial opportunities in areas that include the next generation of ADAS radar as well as advanced performance EV and HEV power systems.
In advanced connectivity applications, we have developed new platform products that have received an enthusiastic response from our customers. These products are aimed at significantly enhancing the performance of the highly demanding 5G infrastructure in both base stations and massive MIMO antenna systems.
Advanced Connectivity Solutions (ACS) delivered third quarter net sales of $72 million, which were relatively flat compared to the third quarter of 2017 and a decrease of 6% compared to the second quarter of 2018. Lower-than-expected revenues were due to weaker demand for applications in 4G LTE and ADAS. Softness in wireless infrastructure was associated with sluggish demand for 4G LTE applications in anticipation of the transition to 5G. We’ve seen a number of positive indicators regarding the 5G build-out. According to industry sources, leading smartphone manufacturers are now set to roll out 5G-enabled models in the first half of 2019. In addition, there have been successful service provider field test results in both China and the US. Further, industry experts are predicting 2019 5G base station installations of roughly 100,000 to 200,000 units. Rogers continues to achieve substantial design wins with significantly higher content than 4G LTE from all major telecom equipment OEMs. We are preparing for this major growth opportunity through ongoing capacity expansion projects, including our recent plant and equipment acquisition in Chandler, Arizona.
In Q3, Elastomeric Material Solutions (EMS) delivered all-time record net sales of $96 million. Organic sales revenues increased 8% over Q3 2017. Including contributions from the Griswold business, revenues increased 17% over Q3 2017 and 21% sequentially. Net sales were driven by strong demand in automotive applications, particularly EV/HEV battery pads and battery pack sealing systems, in addition to seasonal strength in portable electronics. Looking ahead, we expect to see the broad-based growth for EMS applications to continue, with particular strength in EV/HEV applications.
In Q3, Power Electronics Solutions (PES) achieved net sales of $55 million, an increase of 19% over Q3 2017 and a 3% increase over the second quarter of 2018. We saw particular strength in EV/HEV applications, where we were up over 50% year-over-year and 20% sequentially. Part of this strong EV/HEV growth was driven by record demand for our new-generation silicon nitride materials for wide bandgap semiconductor packaging. We also saw a strong demand for ROLINX power interconnects in electric vehicle applications. Looking ahead, we anticipate continued robust growth in demand for our EV/HEV applications.
Q3 2018 Earnings Call Transcript
Q3 2018 Financial Press Release
Q3 2018 Earnings Call Slides