ROGERS, Conn. (AP) -- Rogers Corp.'s shares fell about 4 percent in after-hours trading Tuesday after the company lowered its second-quarter earnings forecast and unveiled major cost-cutting measures.
The materials company, based in Rogers, Conn., said it is cutting costs in order to improve its profitability.
Rogers' plan includes freezing pension plans for certain employees and increasing 401(k) contributions. The company will take a $1.2 million charge in the second quarter tied to the freeze. The company also said that it will make other cost reductions, which it did not detail, that will lead to charges of $2.4 million, the bulk of which will be recognized in the second quarter.
Rogers said that the benefit from the cost savings will begin to be seen in the third quarter of 2013 and build to annual savings of about $12 million by the first quarter of 2014.
The company also said Tuesday that it expects to earn between 32 and 43 cents per share for its second quarter, down from its earlier forecast of 45 to 56 cents per share. It maintained its forecast of adjusted earnings from continuing operations of 47 to 58 cents per share. Rogers still anticipates revenue for the period between $129 million and $134 million.
Analysts polled by FactSet were anticipating adjusted earnings of 54 cents per share for the quarter on revenue of $132.4 million.
The company's stock fell $1.97 to $43.10 in after-hours trading.