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Rogers Corporation announced additional actions to improve the Company’s cost structure, streamline operations and drive significant improvements in operating margin for 2023.
“As we navigate the current challenging market environment, Rogers remains committed to taking decisive action to lower costs and improve profitability. The actions announced today, coupled with the initiatives we outlined in December, reflect that commitment,” said Colin Gouveia, President and Chief Executive Officer of the Company. “Rogers is extremely well-positioned within key secular growth markets. By making selective investments and actively managing our costs, we expect to deliver both top line growth and improved operating margins as we capitalize on the opportunities ahead of us.”
Key additional actions include:
Divesting a non-core, low-margin, rubber product line in the Elastomeric Material Solutions business unit by the end of the first quarter of 2023. A primarily non-cash charge of approximately $27 million was recorded in the fourth quarter of 2022 related to the transaction. Revenues from this product line were approximately $18 million in 2022.
Optimizing the manufacturing footprint of the Advanced Electronic Solutions’ laminate circuit materials business, including exiting the Price Road facility in Arizona. Exiting the Price Road facility resulted in a primarily non-cash charge of approximately $40 million in the fourth quarter of 2022.
Targeted reductions in corporate and manufacturing employee-related expenses, professional service fees and discretionary expenses.
These actions announced today are in addition to cost reduction initiatives outlined during a public investor call held by Rogers on December 8, 2022. These combined actions will result in a reduction of approximately 7% of Rogers’ global workforce and a significant decrease in other manufacturing costs and operating expenses.