Rogers (ROG)2025-02-26 21:21Business Segments and Operations - The company operates two strategic segments: Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS), with non-core businesses reported in the Other segment[16]. - In 2024, the company sold to approximately 2,900 customers worldwide, with no individual customer representing more than 10% of total net sales[20]. - The company employs approximately 3,200 people globally, with 1,100 in North America, 1,100 in EMEA, and 1,000 in APAC[30]. - The company has established Rogers Innovation Centers in Chandler, Arizona; Rogers, Connecticut; Eschenbach, Germany; and Suzhou, China, focusing on the development of new high-tech materials[24]. Financial Performance and Risks - The company recognized a net payment of 7.7 million[19]. - In 2024, a 10% strengthening of the U.S. dollar relative to other currencies would have resulted in a decrease to net sales and net income of approximately 4.1 million, respectively[157]. - A 10% weakening of the U.S. dollar relative to other currencies would have resulted in an increase to net sales and net income of approximately 4.9 million, respectively[157]. - As of December 31, 2024, the interest rate on the revolving credit facility was 6.30%, with a 100-basis point increase in SOFR resulting in an immaterial increase in interest expense for the year[158]. - The company has no borrowings outstanding under its revolving credit facility as of December 31, 2024[158]. Raw Materials and Supply Chain - Key raw materials include copper, polymer, polytetrafluoroethylene, and silicone materials, with some sourced from sole or limited-source suppliers[27][28]. - The company is exposed to fluctuations in the cost of raw materials, particularly copper and ceramic, which are key materials in its products[159]. - The company utilizes hedging strategies to minimize the risk of market-driven price changes in copper, the most frequently used commodity in its manufacturing processes[159]. - The company does not currently use hedging strategies for other commodity-based raw materials but regularly reviews such strategies[159]. Corporate Culture and Innovation - The company emphasizes a culture of respect and ethical practices, connecting day-to-day work with organizational objectives[31]. - The company aims to minimize lost workdays and promote health and safety, with a vision that everyone goes home safely every day[32]. - The company has a history of innovation, which is a key component of its overall business strategy, driven by R&D efforts[24]. - The company competes primarily on innovation, product quality, and technical support, differentiating itself from both large multinationals and smaller regional producers[22]. Governance and Leadership - The company provides access to its financial reports and governance documents on its website[36]. - The company has a diverse executive team with extensive experience in various relevant industries[35]. Risk Management - The company monitors foreign exchange risks and manages them on specific transactions using analytical techniques and sensitivity analysis[157].