ROGERS, Conn.--(BUSINESS WIRE)--October 29, 2008--Rogers Corporation (NYSE:ROG) announced today third quarter 2008 revenues of $101.7 million and net earnings of $0.51 per diluted share. Revenues and earnings per diluted share were slightly higher than the Company’s July 30, 2008 guidance of $98-$101 million in sales and $0.45-$0.48 in earnings per diluted share. Third quarter 2007 revenues from continuing operations were $109.6 million with income from continuing operations of $0.55 per diluted share.

High Performance Foams achieved all time record quarterly sales of $33.9 million, approximately 15% higher than the $29.5 million reported for the third quarter of 2007. Sales gains were driven by continued strength for PORON® polyurethane foam materials across several market segments, especially in the consumer electronics market and in major cell phone applications, where the Company continues to win new designs. The Company is pleased with the operational performance of this business as it continues to develop new products and gain wider acceptance in diverse applications around the world, by helping customers meet their more stringent product requirements.

Sales of Printed Circuit Materials for the quarter totaled $31.8 million, down approximately 14% from the third quarter of 2007. The Flexible Circuit Materials business, which previously was included in Printed Circuit Materials, accounted for approximately two thirds of the year-over-year drop in quarterly sales. The balance of the lower revenues is due to weaker demand for low-noise-block–down converters (LNB’s) into the Satellite TV market. The downturn in this market segment is attributable to the softness in the new housing market and weakened economy. On the positive side, we are starting to see signs that “3G” (Third Generation) wireless systems are beginning to be rolled out in China and the three major telecom providers in China appear to be moving forward with their wireless infrastructure build. Also, high frequency circuit material sales into high reliability markets continue to do well.

Custom Electrical Component sales for the third quarter were $23.2 million, compared to sales of $32.9 million reported in the third quarter of 2007. As expected, the decline in revenue was driven by the reduction in demand for electroluminescent lamps (EL) for keypad backlighting in the portable communications market. Strength in demand for the Company’s power distribution systems products into the mass transit market continues to gain momentum with record third quarter sales, which marks the twelfth consecutive quarter of record year-over-year quarterly sales. Additionally, the Company is increasing the penetration of its power distribution systems products into turbines for wind power applications, and anticipates it will continue to benefit from the planned mass transit infrastructure expansion expected in China and other countries around the world.

Rogers’ 50% owned joint ventures had quarterly sales totaling $32.8 million, an increase of 4.6% compared to the $31.4 million sold in the third quarter of 2007. The Company’s polyurethane foam joint ventures with INOAC Corporation in Japan and China drove the growth for this quarter.

Rogers’ gross margin for the third quarter of 2008 was 31.5% versus 28.4% in the third quarter of 2007. Inventories at the end of the third quarter totaled $46 million versus $51.2 million at the end of 2007.

Rogers’ balance sheet ended the third quarter with a cash and short-term investment balance of $46.7 million, while the Company generated free cash flow of $3.3 million. The Company’s holdings of auction rate securities at quarter-end had a par value of $54.4 million with a $52.9 million fair value. Subsequent to the close of the third quarter, we were notified that two of the investments held in auction rate securities will be redeemed at par value and a third investment will be partially redeemed also at par value during the fourth quarter of 2008, for a total redemption of $4.4 million. The Company will continue to classify these investments as long-term marketable securities on the balance sheet, except those that mature within 12 months, or that will be redeemed in the fourth quarter. Capital expenditures were approximately $5.3 million for the third quarter 2008 and $14.4 million year-to-date. Total capital expenditures for the year are expected to be approximately $20 million.

The Company's third quarter effective tax rate was 17.3%. The Company’s third quarter results benefited from certain one-time discrete tax adjustments that positively impacted the rate; however, these adjustments were almost entirely offset by consulting fees and incentive compensation costs directly attributable to a portion of these tax benefits. The Company believes its tax rate will be approximately 26% for the full year 2008 as it continues to benefit from the implementation of certain international tax planning strategies as well as the retroactive reinstatement of the federal research and development tax credit.

Robert D. Wachob, Rogers’ President and CEO commented; “Considering the current state of the world economy, I am pleased with Rogers’ third quarter results. These results reflect the Company’s strong balanced product portfolio and the diverse global markets that we serve. Rogers continues to introduce new products and new applications to strengthen our overall market position. The core businesses of Rogers, which excludes the restructured Durel and Flexible Circuit Materials businesses, grew sales by approximately 8.5% compared to the third quarter of 2007. The Company continues to generate strong cash flow and has a solid, debt free balance sheet, which affords us the flexibility to be opportunistic in these difficult times and press ahead when our competition may not be as fortunate. While we do not know for sure how the economy will unfold, based on fourth quarter results so far and current forecasts, which include a sequential $6 million decline at Durel, we project fourth quarter net earnings per diluted share of $0.40-$0.46 and sales of $92-$96 million.”

Rogers Corporation (NYSE:ROG), headquartered in Rogers, CT, is a global technology leader in the development and manufacture of high performance, specialty-material-based products for a variety of applications in diverse markets including: portable communications, communications infrastructure, computer and office equipment, consumer products, ground transportation, aerospace and defense. Rogers operates manufacturing facilities in the United States (Arizona, Connecticut and Illinois), Europe (Ghent, Belgium) and Asia (Suzhou, China). In Asia, the Company maintains sales offices in Japan, China, Taiwan, Korea and Singapore. Rogers has joint ventures in Japan and China with INOAC Corporation, in Taiwan with Chang Chun Plastics Co., Ltd. and in the U.S. with Mitsui Chemicals, Inc.

Statements in this news release that are not strictly historical may be deemed to be “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and are subject to the many uncertainties that exist in the Company’s operations and environment. These uncertainties, which include economic conditions, market demand and pricing, competitive and cost factors, rapid technological change, new product introductions, legal proceedings, and the like, are incorporated by reference in the Rogers Corporation 2007 Form 10-K filed with the Securities and Exchange Commission. Such factors could cause actual results to differ materially from those in the forward-looking statements. All information in this press release is as of October 29, 2008, and Rogers undertakes no duty to update this information unless required by law.

For more information, please contact the Company directly, visit Rogers’ website on the Internet, or send a message by email.

Financial News Contact: Dennis M. Loughran, Vice President Finance and Chief Financial Officer

Investor Contact: William J. Tryon, Manager of Investor and Public Relations

A conference call to discuss third quarter results will be held on Thursday, October 30, 2008 at 9:00AM (Eastern Time).

For playback access, please call: 1-800-642-1687 in the United States and 1-706-645-9291 internationally through 11:59PM (Eastern Time), Thursday, November 6, 2008. The passcode for the audio replay is 70786063.

The call will also be webcast live in a listen-only mode. The webcast may be accessed through links available on the Rogers Corporation website at www.rogerscorp.com. Replay of the archived webcast will be available on the Rogers website beginning two hours following the webcast.

	Three Months Ended					Nine Months Ended
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)	September 28, 2008		September 30, 2007			September 28, 2008		September 30, 2007
Net sales	$	101,696	$	109,626		$	301,694	$	322,588
Cost of sales		69,612		78,448			205,830		240,688
Gross margin		32,084		31,178			95,864		81,900

Selling and administrative		20,498		16,874			57,712		53,733
Research and development		5,736		5,577			16,973		17,301
Restructuring and impairment charges		-		202			-		3,283
Operating income (a)		5,850		8,525			21,179		7,583

Equity income in unconsolidated joint ventures		2,536		2,110			5,145		4,852
Other income less other charges		622		72			2,058		844
Interest income, net		594		449			2,064		1,334
Income from continuing operations before income taxes		9,602		11,156			30,446		14,613
Income tax expense		1,657		2,060			7,785		741
Income from continuing operations		7,945		9,096			22,661		13,872
Income (loss) from discontinued operations		-		(146	)		-		259
Net income	$	7,945	$	8,950		$	22,661	$	14,131

Basic net income per share:
Income from continuing operations	$	0.51	$	0.55		$	1.44	$	0.84
Income (loss) from discontinued operations		-		(0.01	)		-		0.01
Net income	$	0.51	$	0.54		$	1.44	$	0.85

Diluted net income per share:
Income from continuing operations	$	0.51	$	0.55		$	1.43	$	0.83
Income (loss) from discontinued operations		-		(0.01	)		-		0.01
Net income	$	0.51	$	0.54		$	1.43	$	0.84

Shares used in computing:
Basic		15,580,678		16,431,017			15,748,032		16,609,229
Diluted		15,706,531		16,535,851			15,816,923		16,752,750

(a) Net of depreciation and amortization from continuing operations for the third quarter and year-to-date 2008 of $4.5 million and $14.2 million, and 2007 of $6.3 million and $18.2 million respectively.

(IN THOUSANDS)	September 28, 2008		December 30, 2007
Assets
Current assets:
Cash and cash equivalents	$	44,414	$	36,328
Short–term investments		4,292		53,300
Accounts receivable, net		67,818		76,965
Accounts receivable from joint ventures		1,440		3,368
Accounts receivable, other		1,773		2,319
Inventories		45,992		51,243
Prepaid income taxes		1,795		5,160
Deferred income taxes		7,466		10,180
Asbestos-related insurance receivables		4,303		4,303
Other current assets		5,222		3,888
Total current assets		184,515		247,054

Property, plant and equipment, net		147,343		147,203
Investments in unconsolidated joint ventures		30,974		30,556
Deferred income taxes		16,867		9,984
Pension asset		2,173		2,173
Goodwill and other intangibles		10,131		10,131
Asbestos-related insurance receivables		19,149		19,149
Long-term marketable securities		48,582		-
Other assets		4,795		4,698
Total assets	$	464,529	$	470,948

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	18,906	$	22,127
Accrued employee benefits and compensation		20,849		14,991
Accrued income taxes payable		3,318		6,326
Asbestos-related liabilities		4,303		4,303
Other current liabilities		12,438		20,539
Total current liabilities		59,814		68,286

Noncurrent pension liability		3,929		8,009
Noncurrent retiree health care and life insurance benefits		6,288		6,288
Asbestos-related liabilities		19,341		19,341
Other long-term liabilities		8,061		5,043
Shareholders’ equity		367,096		363,981
Total liabilities and shareholders’ equity	$	464,529	$	470,948

CONTACT:
Rogers Corporation
Financial News Contact:
Dennis M. Loughran, 860-779-5508
Vice President Finance and Chief Financial Officer
Fax: 860-779-4714
or
Investor Contact:
William J. Tryon, 860-779-4037
Manager of Investor and Public Relations
william.tryon@rogerscorporation.com
Fax: 860-779-5509