Killingly specialty-products maker Rogers Corp. says its December sales plummeted amid customer uncertainty over the U.S. “fiscal cliff” budget affair, forcing it to lower its fourth-quarter revenue outlook.
Rogers announced Tuesday that it now projects October-December sales in the range of about $124 million from continuing operations, down from its previous fourth-quarter revenue forecast of $129 million to $135 million issued on Nov. 5.
Rogers’ early heads-up is a response to Wall Street’s legendary disdain for nasty surprises when it comes to a public company’s actual sales and earnings, especially if they are materially below what was previously forecast.
The company is due to release actual fourth-quarter sales and earnings in late February.
It also revised downward its net income forecast to 24 cents to 30 cents a diluted share from its previous estimate of about 28 cents a share.
Even so, the news hammered Rogers’ stock Tuesday, closing down $3.98, or 7.7 percent, at $47.69.
“October and November sales were very strong but during the month of December we experienced a considerable decline in orders across all of our businesses,” President and CEO Bruce D. Hoechner said in a statement. “This decrease in demand is likely related to the broader economic environment, including concerns over the U.S. fiscal-cliff issues.”
Rogers’ product line includes industrial motor drives and power systems for automobiles.
