Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations

Discontinued Operations

In the fourth quarter of 2011, we made the strategic decision to end the operations of our TMS operating segment.  We had invested in its operations for the last few years, but had difficulty gaining traction in the market and working through issues in the manufacturing process.  Therefore, we determined that we would not achieve future success in this operation and chose to shut down operations rather than invest further. For the nine month period ended September 30, 2012, operating losses of $0.1 million, net of tax, were reflected as discontinued operations in the accompanying condensed consolidated statements of comprehensive income (loss). There was no activity for this segment in the third quarter of 2012. For the three and nine month periods ended September 30, 2011, operating losses of $1.3 million and $4.2 million, net of tax, respectively, were reflected as discontinued operations in the accompanying condensed consolidated statements of comprehensive income (loss). Net sales associated with the discontinued operations were $0.1 million for the nine months ended September 30, 2012. There was no sales activity for the third quarter of 2012. Net sales were $0.3 million and $0.6 million for the three and nine month periods ended September 30, 2011, respectively.  

Also, in the second quarter of 2012, we decided to cease production of our non-woven composite materials operating segment located in Rogers, Connecticut in an effort to redeploy resources to focus more on our Core Strategic segment operations. Sales of non-woven products have been steadily declining for several years and totaled approximately $1.1 million in the third quarter of 2012 and $4.8 million in fiscal 2011. The shutdown of production is expected to occur by the end of 2012 and is not expected to have a material impact on Rogers’ overall operations and no material charges are expected from this initiative. However, we have concluded that this segment will qualify for treatment as a discontinued operation, once the shut down is complete, which is anticipated to be in the fourth quarter of 2012.