Rogers Corporation Updates on Cost Improvement Initiatives

- Retirement Plan Changes - The Company will be making changes to its retirement plans in order to better plan and manage related expenses, which can have a significant and variable impact on earnings. Effective June 30, 2013 for salaried and non-union hourly employees and December 31, 2013 for union employees, benefits under the Company’s defined benefit pension plans will no longer accrue. The freeze of the defined benefit pension plan for salaried and non-union hourly employees was approved by the board of directors on May 3, 2013. The freeze of the union employees’ defined pension benefit plan was effective upon ratification of the labor agreement on April 14, 2013. Further, effective June 30, 2013, Company contributions under the 401(k) retirement plan for salaried and non-union hourly employees will increase. In addition, the Company will begin to make matching contributions to the 401(k) retirement plan for union employees beginning in January 2014. The Company will incur a curtailment charge related to the freeze of the defined benefit plans of approximately $1.2 million in the second quarter of 2013. Ultimately, the Company expects to recognize annualized benefits, net of the increased 401(k) contributions, of approximately $6.8 million. The benefits will begin to accrue in the third quarter of 2013 with the full benefit to be realized starting in the first quarter of 2014.

- Other Cost Reduction Plans - In order to improve the Company’s profitability and ability to increase investments in growth opportunities, several additional initiatives are underway that are expected to reduce costs by approximately $5.2 million annually starting in the third quarter of 2013. These initiatives however, will result in the recognition of special charges during the balance of the year as changes are implemented. The Company expects the total charges will be approximately $2.4 million, of which approximately $2.3 million will be recognized in the second quarter of 2013.

On April 30, 2013, the Company announced guidance for the second quarter of 2013 of net sales between $129 to $134 million, GAAP income from continuing operations of between $0.45 and $0.56 per diluted share and non-GAAP income (excluding special charges) from continuing operations of between $0.47 and $0.58 per diluted share. The Company now projects GAAP income per diluted share for the second quarter to be $0.32 to $0.43; the net sales and non-GAAP income guidance provided on April 30, 2013 is still appropriate at this time. Reconciliation of the GAAP to non-GAAP guidance is set forth at the end of this release.

Bruce Hoechner, Rogers' President and CEO commented: “We continue on our path to transform Rogers into a leaner organization with consistent growth and strong profitability. These announced actions will allow us to accelerate our profit improvement and continue to make investments in strategic initiatives that we believe will lead to enhanced sales, marketing, manufacturing and technology innovation capabilities that will drive the growth and profitability that we desire.”