You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: The slides for today's call can be found on the Investors section of our website, along with the news release that was issued today.
These uncertainties could include economic conditions, market demands, and competitive factors.
Also the discussions during this conference call may include certain financial measures that were not prepared in accordance with Generally Accepted Accounting Principles.
Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the slide deck for today's call, which is posted on the Investor's section of our website.
Demand was strong across much of our business, and especially in the EV/HEV market where sales grew rapidly.
Rogers was not immune to the global supply chain challenges experienced by many manufacturing companies in the second quarter.
These conditions were more significant than anticipated, and tempered our top line growth and resulted in margins and earnings per share that were below our guidance.
Specific issues we faced included, supply constraints, labor shortages and raw material cost increases, which we're proactively managing through commercial and operational actions.
Our operational excellence and capacity expansion programs are on track, and as supply conditions improve, we expect to achieve our 40% gross margin target.
Turning to a review of our markets; in the second quarter growth was strong in several of our strategic focus areas.
Sales in the EV/HEV market continue to grow at a rapid pace, with Q2 revenues increasing at a mid-teens rate, compared to the prior quarter.
Led by a rebound in solar and wind demand, clean energy sales grew at a double-digit rate sequentially.
Defense market sales were again strong, and revenue improved at a high-single digit rate.
Industrial market sales were relatively flat, following a sharp rebound in the first quarter.
ADAS sales declined relative to the prior quarter, due to inventory adjustments.
after three strong quarters of growth.
We believe this is a temporary situation, as the ADAS market outlook is robust, which I will detail in more in a moment.
And our leading market position remains extremely strong in ADAS.
Our sales in the Portable Electronics market decreased slightly in Q2 over Q1, due to the manufacturing disruption at our UTIS facility.
Excluding UTIS sales, Portable Electronics' revenue increased 5% quarter-over-quarter, reflecting the ongoing strength of the Portable Electronics market.
Overall, we are very encouraged by the healthy demand across much of our portfolio and especially in the EV/HEV market.
Our competitive positions continue to be strong, and we are seeing the benefits of our strategy to leverage our innovative and high performance solutions, in markets with long-term secular tailwinds, such as Advanced Mobility.
Turning to slide 5; I'll provide an update on the longer-term growth outlook for Advanced Mobility.
I'll begin first with ADAS before discussing the EV/HEV outlook.
In ADAS, we continue to expect a mid-teens growth opportunity in auto radar units over the next five years, driven by further market penetration and increasing levels of vehicle autonomy.
Next-generation radar technologies are essential to the future of autonomous vehicles, and Rogers is helping to drive innovation in this space.
We continue to strengthen our leading position in this market with design wins in both current and next-generation programs.
Moving next to the EV/HEV market, the long-term outlook continues to be very robust, with an expected annual growth rate of more than 30% over the next five years.
Recent trends continue to support this strong outlook.
For example, year-to-date sales of plug-in EVs and HEVs in Europe accounted for 15% of the market.
In China, electric vehicle sales reached a new milestone in the second quarter, exceeding 10% of the market.
Third party analysis also points to an acceleration in EV/HEV adoption, driven by growing consumer preference for non-ICE vehicles and supportive policy changes.
A recent E&Y report highlighted that combined plug in EV and HEV sales in the U.S., China and Europe are now expected to surpass sales of all other powertrains five years earlier than previously anticipated.
In addition, growth expectations for full electric vehicles also continue to accelerate.
For instance, the latest projections from HIS, estimate that full electric vehicle production will reach close to 40 million units globally over the next four years.
This is an increase of 25% or about 8 million vehicles, compared to their forecast from only two years ago.
Reflected in these estimates are the growing number of automakers, who have announced plans to transition their entire fleet to full EVs within the next decade.
To take advantage of the strong growth outlook in Advanced Mobility, we are investing aggressively in new capacity and capabilities.
We plan to double our capital spending this year, in order to invest in new capacity to support growth in the EV/HEV market.
Our next highlight, Rogers' strong portfolio of products for this market, and how we are positioned to benefit from both the acceleration of the market and the trend toward rising degrees of electrification.
For EV/HEV manufacturers reliability, safety and performance are critical design elements, and Rogers' solutions address these needs.
In the AES business, we have content opportunities with both our ceramic substrate and power interconnect products.
Increasingly, EV and HEV designs are incorporating wide bandgap semiconductors to improve vehicle efficiency and range.
These semiconductors require high performance packaging that our ceramic substrates provide.
Our substrate content increases with higher degrees of electrification and is more than five times higher in a full EV, as compared to a mild hybrid.
We are encouraged by our success in this market and recent design wins are adding to our growth.
Power interconnects provide an additional content opportunity in EV/HEV.
They are critical components that distribute power and are essential to the performance and reliability of the vehicle.
We have secured design wins with several leading entrants to the EV market.
This opportunity is expected to grow, as these customers ramp up volumes in the coming year.
In our EMS business, we have leveraged our expertise in polyurethane and silicone materials, to develop innovative solutions that improve the performance and reliability of EV batteries.
Our content opportunities include.
battery compression pads for plug-in HEVs and EVs, and other solutions, such as vibration damping pads, and battery pack sealing systems, which can be used across all battery types and sizes.
Battery compression pads have been larger content opportunity, which increases with battery size.
Sales of our other EV battery solutions have increased significantly this year, driven by a number of important design wins.
In addition to the opportunities in Advanced Mobility, there are also compelling growth opportunities in other areas of our market portfolio, such as clean energy, Portable Electronics, and defense.
These markets comprise approximately 30% of Roger's total sales, and we expect these markets to grow at a high-single digit rate over time.
In clean energy, we have exposure to both solar and wind energy markets with our ceramic substrates and power interconnects.
Year-to-date growth has been strong and the combined solar and wind market is expected to grow at a 10% CAGR over the next five years.
In the Portable Electronics market, sales of 5G smartphones are expected to nearly double this year, as the overall market grows at mid-single digit rate.
The higher performance and advanced features of 5G smartphones, means that our content can range from 10% to 30% higher versus the previous generation of phones.
Our near term Portable Electronic sales are tempered by lower UTIS capacity, but we expect 5G demand to remain robust for the next several years, which provides Rogers with a good growth opportunity, especially, as we rebuild our UTIS capacity.
The longer-term outlook in the defense market continues to be promising, as funding of technology programs, such as missile and radar systems, is expected to drive increasing demand for Rogers' advanced circuit materials.
Turning to slide 7; I'll recap the key messages from today's call.
We are encouraged by the strong market demand that we continue to see across much of our business.
This includes, faster growing markets such as EV/HEV, but also in other attractive market opportunities like clean energy and defense.
Near term, we are not isolated from the current global supply chain challenges, but we are making progress managing these issues and our operational excellence programs remain on track.
We continue to add to our strong competitive positions, with new design wins, and we are seeing the results of our strategic focus on growth opportunities in our market portfolio, and especially in Advanced Mobility.
We are moving forward rapidly with our investments in new capacity and related capabilities, to help ensure our leadership in the EV/HEV market, and to take advantage of the significant growth ahead.
I will begin on slide 9.
As Bruce mentioned in his overview, we continue to grow our top line.
Q2 revenue improved 2.5% sequentially to $234.9 million, which was at the midpoint of our guidance range.
Gross margin of 38.2% and adjusted earnings per share of $1.72, were below our guidance range, primarily due to the impact of raw material shortages and cost increases in the quarter.
In the slides ahead, I'll review our second quarter 2012 results in detail, followed by our third quarter guidance.
Turning to slide 10; Rogers delivered Q2 revenues of $234.9 million, 2.5% higher than Q1.
Volume increased 2.8% and were slightly offset by unfavorable currency rates of approximately 0.3%.
Q2 sales growth was tempered by raw material supply constraints, and disruptions to our UTIS facility.
AES revenue increased 6.5%, to $140.4 million, due to strong demand in power semiconductor substrate and RF solutions.
EV/HEV applications revenues accounted for 15% of the segment revenues and increased 34% sequentially.
Ceramic substrates, used in power semiconductor devices, had a very strong quarter and revenues for the business grew over 40% sequentially.
Clean energy sales accounted for 17% [Phonetic] of AES revenues and grew 11% sequentially.
We believe that renewable energy demand will have a meaningful long-term momentum.
Within RF Solutions, the Aerospace and Defense business was 19% of the business segment revenues, and grew 8% versus Q1.
Wireless infrastructure revenues grew mid-single digits sequentially and accounted for 16% of the segment revenues.
ADAS was 15% of AES revenues and declined modestly versus prior quarter, due to customers adjusting inventory levels.
The EMS business finished the quarter with revenues of $89.3 million, 3% lower than the first quarter.
Market demand continues to be very strong, but sales for the quarter were impacted by the raw material shortages and lower unit revenue.
EV/HEV sales, which represents 11% of EMS revenues, were relatively flat compared to Q1 due to order timings, Q2 general industrial sales which made up 46% of the segment revenue were also relatively unchanged versus prior quarter.
Lower use production resulted in a 7% decrease in Portable Electronics revenue.
Our plan is to restart production of certain use products by the end of 2021, with full capacity ramp up from the first half of next year.
Turning to slide 11; our gross margin for the second quarter was $89.8 million or 38.2% of revenues, 80 basis points lower than both Q1 and the midpoint of our guidance range for the quarter.
Our operational excellence programs are on track, and we benefited from the higher volume in the quarter.
However, higher than forecasted supply chain constraints resulted in the lower Q2 margins.
Gross margin for the quarter was negatively impacted by 130 basis points due to raw material shortages in EMS. Additionally, raw material cost increases in both AES and EMS unfavorably impacted margins by 70 basis points.
Although the raw material supply situation has since improved, we expect some challenges to continue into the third quarter.
As mentioned previously, we have taken commercial actions to mitigate increasing commodity and other raw material costs, these actions will have a positive impact on our Q3 results.
Also, on slide 11, we detail the changes to adjusted net income of $32.5 million in Q2 compared to adjusted net income for Q1, of $36 million.
The adjusted operating income for Q2 of $40.8 million or 17.4% of revenues was 150 basis points lower than Q1.
Adjusted operating expenses for Q2 of $49.1 million or 20.9% of revenues were 80 basis points higher than Q1 expenses.
The higher adjusted operating expenses, were mainly due to increase in performance based compensation cost, based on a stronger outlook, timing of certain expenses, as well as reinvestments in the business.
Other income expenses was $1.8 million unfavorable compared to Q1.
Although the copper hedging portfolio gains were positive in Q2, it was meaningfully lower than Q1, due to the steep decline of copper prices to the back end of the quarter.
The higher adjusted operating expenses and lower other income, just described were the primary reasons for the decline of net income and earnings per share versus prior quarter.
Turning to slide 12, the company generated free cash flow of $11.9 million in the second quarter and $44.8 million June year-to-date.
We ended the quarter with a cash position of $203.9 million.
In the quarter, we generated $29.7 million from operating activities net of an increase of $13.9 million in working capital.
We repaid $4 million of our credit facility and ended the quarter with no outstanding debt.
In Q2, the company spent $17.8 million on capital expenditure.
We continue to guide our capital expenditure of $70 million to $80 million for the full year 2021.
The company continues to have a very strong balance sheet and generate robust free cash flows, that provides us the flexibility to accelerate the investments necessary to support organic and inorganic growth opportunities.
Turning now to third quarter guidance on slide 13.
We see continued sales growth across most of our portfolio in the second half of the year, led by EV/HEV.
However, this will be tempered by the lack of availability of certain raw materials.
Based on these factors, we are guiding our third quarter revenues to be in the range of $235 million to $245 million.
We expect Q3 gross margin to improve sequentially, driven by higher volume, continued operational excellence initiatives and ongoing commercial actions.
These items will offset the impact of certain supply chain challenges that will continue into Q3.
For these reasons, we guide third quarter gross margin be in the range of 38.5% to 39.5% to the midpoint of 39%.
Q3 operating expenses are forecasted to increase sequentially, mainly due to a $3 million one-time cost to support strategic growth initiatives.
We are guiding GAAP Q3 earnings in the range of $1.50 to $1.65 per fully diluted share, we guide fully diluted adjusted earnings in the range of $1.70 to $1.85 per share for the third quarter.
The effective tax rate for the full year is guided to 24% to 25%.

user
compname reports q2 adjusted earnings per share of $1.72.
q2 adjusted earnings per share $1.72.
q2 sales $234.9 million.
sees q3 2021 net sales $235 million to $245 million.
sees q3 2021 earnings per share $1.50 to $1.65.
sees q3 2021 adjusted earnings per share $1.70 to $1.85.
sees 2021 capital expenditures $70 million to $80 million.

assistant