Rogers Corporation (NYSE:ROG) Q2 2024 Earnings Conference Call July 25, 2024 5:00 PM ET

Company Participants

Steve Haymore - Director, Investor Relations
Colin Gouveia - President and CEO
Ram Mayampurath - Senior Vice President and CFO

Conference Call Participants

Daniel Moore - CJS Securities
Craig Ellis - B. Riley Securities

Operator

Good afternoon. My name is Alicia, and I’ll be your conference operator today. At this time, I would like to welcome everyone to Rogers Corporation’s Second Quarter 2024 Earnings Conference Call.

I will now like to turn the call over to your host, Mr. Steve Haymore, Director of Investor Relations. Mr. Haymore, you may begin.

Steve Haymore

Good afternoon, everyone. And welcome to the Rogers Corporation second quarter 2024 earnings conference call. The slides for today’s call can be found on the Investor section of our website, along with the press release that was issued earlier today.

Please turn to Slide 2. Before we begin, I’d like to note that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and should be considered as subject to the many uncertainties that exist in Rogers operations and environment. These uncertainties include economic conditions, market demands and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statement made today.

Please turn to Slide 3. The discussions during this conference call will also reference certain financial measures that were not prepared in accordance with U.S. Generally Accepted Accounting Principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the slide deck for today’s call, which are available on our Investor Relations website.

Turning to Slide 4, with me today is Colin Gouveia, President and CEO; and Ram Mayampurath, Senior Vice President and CFO.

I will now turn the call over to Colin.

Colin Gouveia

Thanks, Steve. Good afternoon to everyone, and thank you for joining us today. I will start by highlighting the key messages for the quarter on Slide 5. Our execution was solid in the second quarter and results were in line with our expectations. Sales were near the midpoint and gross margin performance exceeded the high end of our outlook. The strong improvement in gross margin drove adjusted earnings near the top end of our guidance range.

Sales were stronger in some areas, such as Portable Electronics and Wireless Infrastructure. Tempering this growth was elevated customer inventory levels of our ceramic products, which impacted the EV/HEV, Industrial and Renewable Energy markets.