Exhibit 99.1
Milacron's Q3-06 Results in Line with Guidance
Revenues Up 9% From Year Ago
CINCINNATI--(BUSINESS WIRE)--Nov. 3, 2006--Milacron Inc. (NYSE: MZ), a
leading global supplier of plastics-processing technologies and industrial
fluids, today reported third-quarter results in line with its August 3 guidance.
Consolidated Results
For the quarter ended September 30, 2006, Milacron incurred a net loss of
$7.2 million, or $0.20 per diluted share, which included $2.9 million in
restructuring charges. This compared to a net loss of $6.9 million, or $0.18 per
diluted share, in the third quarter of 2005, which included an after tax gain of
$0.7 million from discontinued operations.
Manufacturing margins in the third quarter improved to 18.7% from 17.5% in
the year-ago quarter, primarily as a result of better pricing and cost-reduction
initiatives.
Sales for the third quarter were $209 million, up 9% over last year's $191
million. New orders of $201 million were up 5% from $191 million in the third
quarter of 2005.
Cash on hand at the end of the quarter was $36 million, and Milacron had
approximately $36 million available for borrowing under its asset-based
revolving credit facility. Despite making a $30 million voluntary advance
contribution to its U.S. defined benefit plan in September, the company's
liquidity (cash plus borrowing availability) stood at $72 million at the end of
the quarter, down only $6 million from the prior quarter. Credit for this
pre-payment, which was funded primarily through asset liquidations and
disposals, will eliminate the requirement for any contributions to this plan in
2007.
"We are making progress on several fronts," said Ronald D. Brown, chairman,
president and chief executive officer. "In the third quarter, we satisfied a
significant pension funding obligation with limited impact on our liquidity. We
further expanded our aftermarket sales and our presence in emerging markets. And
we are on track to complete the bulk of our previously announced consolidation
by year-end, with full benefits expected in 2007. We must continue to build on
this progress going forward," he said.
Consolidation Plan
Milacron's consolidation plan, which calls for streamlining the
organization and reducing the overall cost structure, is on track for completion
by early 2007. In total, the restructuring actions are expected to result in
charges of approximately $18 million, of which about $13 million will be in
cash, spread over 2006 and the first half of 2007. The plan is projected to
generate up to $15 million in annualized savings, of which $4 million to $5
million is expected to be realized in 2006.
Segment Results
Machinery Technologies-North America (machinery and related parts and
services for injection molding, blow molding and extrusion supplied from North
America, India and China) Boosted by higher shipments of injection molding
machines, sales rose to $106 million, up 22% over sales of $87 million in the
same period last year. Segment earnings rose to $6.0 million from $4.3 million
in the year-ago quarter. New business increased across the board for injection
molding, blow molding and extrusion equipment, climbing 19% to $106 million from
$89 million, aided in part by orders received at NPE 2006, the major triennial
plastics industry trade show held this summer.
Machinery Technologies-Europe (machinery and related parts and services for
injection molding and blow molding supplied from Europe) As demand in Western
Europe remained soft, third-quarter new orders of $31 million were down from $34
million in the year-ago quarter. Aided by favorable currency translation
effects, however, sales of $40 million were up from $37 million in the third
quarter of 2005. Additional expenses incurred in the implementation of a new ERP
(enterprise resource planning) system during the quarter were offset by
restructuring benefits, as the segment narrowed its operating loss to $0.7
million from $1.5 million a year ago.
Mold Technologies (mold bases and related parts and services, as well as
maintenance, repair and operating supplies for injection molding worldwide)
Softness in the North American market, particularly in the automotive sector,
led to a sales decline in the third quarter to $38 million from $41 million a
year ago. Benefits from restructuring as well as other cost reductions reduced
losses of $0.7 million a year ago to breakeven for the quarter.
Industrial Fluids (water-based and oil-based coolants, lubricants and
cleaners for metalcutting and metalforming operations worldwide) Improved
pricing in North America and Western Europe helped boost sales and earnings.
Sales were $29 million, up $2 million over the third quarter of 2005. Segment
earnings of $1.9 million, up slightly from $1.8 million a year ago, were held
back in part by additional expenses associated with expanding distribution in
emerging markets and continued raw material cost increases.
Dividends
Milacron declared two quarterly dividends of $1.00 per share each ($2.00
total) on its 4% Cumulative Preferred Stock, the accrued September 2006 dividend
and the December 2006 dividend, both payable on December 1 to the holders of
record on November 17. The company continues to accrue dividends on its 6%
Series B Convertible Preferred Stock. No dividends were declared on its common
stock. Milacron currently has outstanding: 60,000 shares of 4% Cumulative
Preferred Stock, 500,000 shares of 6% Series B Convertible Preferred Stock, and
approximately 52 million shares of common stock.
Outlook
"In the fourth quarter, we could see slightly lower net results compared to
the third quarter due to higher restructuring costs," Brown said.
"Longer term, Milacron's outlook remains positive. For 2007, we are
planning on 4% to 5% top-line growth overall. We expect growth outside U.S. and
Western European markets to exceed this rate, as we continue to expand our
global presence. Greater sales volume, improved pricing, incremental
restructuring benefits and other cost reductions should lead to better margins,"
he said.
The forward-looking statements above by their nature involve risks and
uncertainties that could significantly impact operations, markets, products and
expected results. For further information please refer to the Cautionary
Statement included in the company's most recent Form 10-Q on file with the
Securities and Exchange Commission.
Investor Conference Call
Today at 1:00 p.m. EST, Milacron will hold an open investor conference
call, which can be accessed live at www.milacron.com. The dial-in number for
those interested in asking questions is (913) 981-5592 or (888) 202-2422. A
recording of the conference call will be available from 4:00 p.m. today through
midnight November 10 on Milacron's website or by phone: (719) 457-0820 or (888)
203-1112 and providing the access code: 5936364.
First incorporated in 1884, Milacron is a leading global supplier of
plastics-processing technologies and industrial fluids, with major manufacturing
facilities in North America, Europe and Asia. For further information, visit
www.milacron.com or call Milacron's toll-free investor line: (800) 909-6452.
Milacron Inc. and Subsidiaries
Third Quarter 2006
- ----------------------------------------------------------------------
Three Months Ended
September 30,
---------------------------
2006 2005
- ----------------------------------------------------------------------
Sales $209,125,000 $190,725,000
Loss from continuing operations (7,186,000) (7,589,000)
Per Share
Basic (0.20) (0.20)
Diluted (0.20) (0.20)
Earnings from discontinued operations - 724,000
Per Share
Basic - 0.02
Diluted - 0.02
Net loss (7,186,000) (6,865,000)
Per Share
Basic (0.20) (0.18)
Diluted (0.20) (0.18)
Common shares
Weighted average outstanding for
basic EPS 48,424,000 47,706,000
Weighted average outstanding for
diluted EPS 48,424,000 47,706,000
Outstanding at quarter end 51,647,000 49,933,000
- ----------------------------------------------------------------------
Nine Months Ended
September 30,
---------------------------
2006 2005
- ----------------------------------------------------------------------
Sales $622,644,000 $591,842,000
Loss from continuing operations (31,092,000) (21,036,000)
Per Share
Basic (0.79) (0.54)
Diluted (0.79) (0.54)
Earnings from discontinued operations 17,000 1,316,000
Per Share
Basic 0.00 0.03
Diluted 0.00 0.03
Net loss (31,075,000) (19,720,000)
Per Share
Basic (0.79) (0.51)
Diluted (0.79) (0.51)
Common shares
Weighted average outstanding for
basic EPS 48,215,000 47,607,000
Weighted average outstanding for
diluted EPS 48,215,000 47,607,000
Outstanding at quarter end 51,647,000 49,933,000
- --------------------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Consolidated Earnings
Milacron Inc. and Subsidiaries
Third Quarter 2006
- ----------------------------------------------------------------------
(In millions, except per-share data) Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2006 2005 2006 2005
- ------------------------------------------------------ ---------------
Sales $209.1 $190.7 $622.6 $591.8
Cost of products sold 169.8 157.3 509.0 488.4
Cost of products sold related to
restructuring (a) 0.1 - 0.5 -
------- ------- ------- -------
Total cost of products sold 169.9 157.3 509.5 488.4
------- ------- ------- -------
Manufacturing margins 39.2 33.4 113.1 103.4
Percent of sales 18.7% 17.5% 18.2% 17.5%
Other costs and expenses
Selling and administrative 35.3 31.3 107.8 98.5
Restructuring costs (a) 2.8 0.1 11.8 0.8
Other (income) expense - net 0.6 1.3 (0.4) 0.5
------- ------- ------- -------
Total other costs and expenses 38.7 32.7 119.2 99.8
------- ------- ------- -------
Operating earnings (loss) 0.5 0.7 (6.1) 3.6
Interest expense - net (6.8) (7.7) (22.3) (22.9)
------- ------- ------- -------
Loss from continuing operations
before income taxes (6.3) (7.0) (28.4) (19.3)
Provision for income taxes 0.9 0.6 2.7 1.8
------- ------- ------- -------
Loss from continuing operations (7.2) (7.6) (31.1) (21.1)
Discontinued operations - net of
income taxes (b) - 0.7 - 1.3
------- ------- ------- -------
Net loss $ (7.2) $ (6.9) $(31.1) $(19.8)
======= ======= ======= =======
Loss per common share - basic and
diluted
Continuing operations $(0.20) $(0.20) $(0.79) $(0.54)
Discontinued operations - 0.02 - 0.03
------- ------- ------- -------
Net loss $(0.20) $(0.18) $(0.79) $(0.51)
======= ======= ======= =======
(a) In 2006, represents costs related to the consolidation of the
global mold technologies and European plastics machinery businesses
to reduce their cost structures and improve customer service. In
2005, represents costs related to initiatives to reduce operating and
administrative costs.
(b) In 2005, represents adjustments of reserves related to prior
divestitures.
- -------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Consolidated Balance Sheets
Milacron Inc. and Subsidiaries
Third Quarter 2006
- ----------------------------------------------------------------------
(In millions) September 30, September 30,
2006 2005
- ----------------------------------------------------------------------
Assets
Cash and cash equivalents $ 35.7 $ 48.3
Notes and accounts receivable-net 118.2 117.3
Inventories 178.5 162.1
Other current assets 42.0 47.4
------------- -------------
Total current assets 374.4 375.1
Property, plant and equipment - net 114.0 116.0
Goodwill 86.1 84.5
Other noncurrent assets 87.6 109.2
------------- -------------
Total assets $ 662.1 $ 684.8
============= =============
Liabilities and shareholders' equity
(deficit)
Short-term borrowings and long-term debt
due within one year (a) $ 22.4 $ 4.5
Trade accounts payable and advance
billings and deposits 99.9 94.6
Accrued and other current liabilities 88.4 92.7
------------- -------------
Total current liabilities 210.7 191.8
Long-term accrued liabilities 241.1 244.7
Long-term debt 232.2 234.0
Shareholders' equity (deficit) (21.9) 14.3
------------- -------------
Total liabilities and
shareholders' equity (deficit) $ 662.1 $ 684.8
============= =============
(a) In 2006, $17.4 million was drawn against the revolving credit
facility. In 2005, $.8 million was drawn against the revolving credit
facility. Outstanding letters of credit were $8.1 million in 2006 and
$10.3 million in 2005.
- -------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Consolidated Cash Flows
Milacron Inc. and Subsidiaries
Third Quarter 2006
- ----------------------------------------------------------------------
(In millions) Three Months Nine Months
Ended Ended
September 30, September 30,
-------------- ---------------
2006 2005 2006 2005
- ------------------------------------------------------ ---------------
Increase (decrease) in cash and cash
equivalents
Operating activities cash flows
Net Loss $ (7.2) $(6.9) $(31.1) $(19.8)
Discontinued operations - net of
income taxes - (0.7) - (1.3)
Depreciation and amortization 4.2 4.4 12.5 13.5
Restructuring costs 2.9 0.1 12.3 0.8
Working capital changes
Notes and accounts receivable 1.8 10.3 2.4 13.6
Inventories (1.9) (2.0) (14.5) (13.4)
Other current assets 1.3 (0.7) 3.0 1.3
Trade accounts payable (6.7) 1.5 (1.2) (0.6)
Other current liabilities 9.2 5.4 1.2 (1.4)
Deferred income taxes and other -
net (18.3) 3.4 (3.0) 13.2
------- ------ ------- -------
Net cash provided (used) by
operating activities (14.7) 14.8 (18.4) 5.9
Investing activities cash flows
Capital expenditures (2.7) (3.7) (10.3) (7.0)
Net disposals of property, plant
and equipment 2.1 - 2.1 2.1
Divestiture - 0.3 - 0.3
------- ------ ------- -------
Net cash used by investing
activities (0.6) (3.4) (8.2) (4.6)
Financing activities cash flows
Repayments of long-term debt (0.4) (0.4) (1.4) (4.6)
Increase (decrease) in short-term
borrowings 9.4 1.1 15.5 (9.4)
Debt issuance costs - - - (0.6)
Costs of 2004 rights offering - - - (1.1)
Dividends paid - (1.6) (0.1) (4.7)
------- ------ ------- -------
Net cash provided (used) by
financing activities 9.0 (0.9) 14.0 (20.4)
Effect of exchange rate fluctuations
on cash and cash equivalents 0.1 0.4 2.6 (1.8)
------- ------ ------- -------
Increase (decrease) in cash and cash
equivalents (6.2) 10.9 (10.0) (20.9)
Cash and cash equivalents at beginning
of period 41.9 37.4 45.7 69.2
------- ------ ------- -------
Cash and cash equivalents at end of
period $ 35.7 $48.3 $ 35.7 $ 48.3
======= ====== ======= =======
- ------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Segment and Supplemental Information
Milacron Inc. and Subsidiaries
Third Quarter 2006
- ----------------------------------------------------------------------
(In millions) Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2006 2005 2006 2005
- ------------------------------------------------------ ---------------
Machinery technologies North America
Sales $105.7 $ 86.7 $306.7 $269.2
Operating cash flow (a) 7.5 5.8 16.4 15.9
Segment earnings 6.0 4.3 11.9 11.0
Percent of sales 5.7% 5.0% 3.9% 4.1%
New orders 105.7 89.2 312.2 284.8
Machinery technologies Europe
Sales $ 39.8 $ 36.8 $116.0 $112.6
Operating cash flow (a) 0.3 (0.5) (1.5) (1.2)
Segment loss (0.7) (1.5) (4.2) (4.1)
Percent of sales -1.8% -4.1% -3.6% -3.6%
New orders 30.9 34.2 113.8 112.3
Mold technologies
Sales $ 37.7 $ 40.6 $121.1 $129.3
Operating cash flow (a) 1.3 0.7 6.2 6.5
Segment earnings (loss) - (0.7) 2.1 2.2
Percent of sales 0.0% -1.7% 1.7% 1.7%
New orders 37.7 40.7 119.9 129.2
Eliminations
Sales $ (3.2) $ (0.5) $ (9.3) $ (1.5)
New orders (2.7) (0.4) (8.2) (1.3)
Total plastics technologies
Sales $180.0 $163.6 $534.5 $509.6
Operating cash flow (a) 9.1 6.0 21.1 21.2
Segment earnings 5.3 2.1 9.8 9.1
Percent of sales 2.9% 1.3% 1.8% 1.8%
New orders 171.6 163.7 537.7 525.0
Industrial fluids
Sales $ 29.1 $ 27.1 $ 88.1 $ 82.2
Operating cash flow (a) 2.2 2.2 7.8 6.5
Segment earnings 1.9 1.8 6.7 5.1
Percent of sales 6.5% 6.6% 7.6% 6.2%
New orders 29.1 27.1 88.1 82.3
Total continuing operations
Sales $209.1 $190.7 $622.6 $591.8
Operating cash flow (a) 7.6 5.2 18.7 17.9
Segment earnings 7.2 3.9 16.5 14.2
Restructuring costs (b) (2.9) (0.1) (12.3) (0.8)
Corporate expenses (3.6) (3.0) (10.0) (9.5)
Other unallocated expenses (0.2) (0.1) (0.3) (0.3)
------- ------- ------- -------
Operating earnings (loss) 0.5 0.7 (6.1) 3.6
Percent of sales 0.2% 0.4% -1.0% 0.6%
New orders 200.7 190.8 625.8 607.3
Ending backlog 98.5 99.6 98.5 99.6
(a) Represents EBITDA (earnings before interest, income taxes,
depreciation and amortization) before restructuring costs.
(b) In 2006, represents costs related to the consolidation of the
global mold technologies and European plastics machinery businesses
to reduce their cost structures and improve customer service. In
2005, represents costs related to initiatives to reduce operating and
administrative costs.
- -------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Reconciliation of Earnings to Operating Cash Flows
Milacron Inc. and Subsidiaries
Third Quarter 2006
- ----------------------------------------------------------------------
(In millions) Three Months Nine Months
Ended Ended
September 30, September 30,
------------- ---------------
2006 2005 2006 2005
- ------------------------------------------------------ ---------------
Machinery technologies North America
Segment earnings $ 6.0 $ 4.3 $ 11.9 $ 11.0
Depreciation and amortization 1.5 1.5 4.5 4.9
------ ------ ------- -------
Operating cash flow 7.5 5.8 16.4 15.9
Machinery technologies Europe
Segment loss $(0.7) $(1.5) $ (4.2) $ (4.1)
Depreciation and amortization 1.0 1.0 2.7 2.9
------ ------ ------- -------
Operating cash flow 0.3 (0.5) (1.5) (1.2)
Mold technologies
Segment earnings (loss) $ - $(0.7) $ 2.1 $ 2.2
Depreciation and amortization 1.3 1.4 4.1 4.3
------ ------ ------- -------
Operating cash flow 1.3 0.7 6.2 6.5
Total plastics technologies
Segment earnings $ 5.3 $ 2.1 $ 9.8 $ 9.1
Depreciation and amortization 3.8 3.9 11.3 12.1
------ ------ ------- -------
Operating cash flow 9.1 6.0 21.1 21.2
Industrial fluids
Segment earnings $ 1.9 $ 1.8 $ 6.7 $ 5.1
Depreciation and amortization 0.3 0.4 1.1 1.4
------ ------ ------- -------
Operating cash flow 2.2 2.2 7.8 6.5
Total continuing operations
Net Loss $(7.2) $(6.9) $(31.1) $(19.8)
Discontinued operations - net of income
taxes (a) - (0.7) - (1.3)
Provision for income taxes 0.9 0.6 2.7 1.8
Interest expense - net 6.8 7.7 22.3 22.9
Restructuring costs (b) 2.9 0.1 12.3 0.8
Depreciation and amortization 4.2 4.4 12.5 13.5
------ ------ ------- -------
Operating cash flow $ 7.6 $ 5.2 $ 18.7 $ 17.9
====== ====== ======= =======
(a) In 2005, represents adjustments of reserves related to prior
divestitures.
(b) In 2006, represents costs related to the consolidation of the
global mold technologies and European plastics machinery businesses
to reduce their cost structures and improve customer service. In
2005, represents costs related to initiatives to reduce operating and
administrative costs.
- -------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Historical Information
- ----------------------------------------------------------------------
(In millions, except per-share data)
2005
-----------------------------------------
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
- ----------------------------------------------------------------------
Sales $192.3 $208.8 $190.7 $217.1 $808.9
Cost of products sold 160.1 171.0 157.3 174.7 663.1
Cost of products sold related
to restructuring - - - - -
-------- ------- ------- ------- --------
Total cost of products
sold 160.1 171.0 157.3 174.7 663.1
-------- ------- ------- ------- --------
Manufacturing margins 32.2 37.8 33.4 42.4 145.8
Other costs and expenses
Selling and administrative 33.5 33.7 31.3 35.3 133.8
Refinancing costs - - - - -
Restructuring costs (a) 0.4 0.3 0.1 0.8 1.6
Other - net (1.0) 0.2 1.3 (0.1) 0.4
-------- ------- ------- ------- --------
Total other costs and
expenses 32.9 34.2 32.7 36.0 135.8
-------- ------- ------- ------- --------
Operating earnings (loss) (0.7) 3.6 0.7 6.4 10.0
Interest expense - net (8.2) (7.0) (7.7) (7.4) (30.3)
-------- ------- ------- ------- --------
Loss from continuing
operations before income
taxes (8.9) (3.4) (7.0) (1.0) (20.3)
Provision (benefit) from
income taxes 0.2 1.0 0.6 (5.6) (3.8)
-------- ------- ------- ------- --------
Earnings (loss) from
continuing operations (9.1) (4.4) (7.6) 4.6 (16.5)
Discontinued operations - net
of income taxes (b)
Loss from operations - - - - -
Net gain on divestitures - 0.6 0.7 1.2 2.5
-------- ------- ------- ------- --------
Total discontinued
operations - 0.6 0.7 1.2 2.5
-------- ------- ------- ------- --------
Net earnings (loss) $(9.1) $(3.8) $(6.9) $5.8 $(14.0)
======== ======= ======= ======= ========
Earnings (loss) per common
share
Basic
Continuing operations $(0.22) $(0.12) $(0.20) $0.06 $(0.47)
Discontinued operations - 0.01 0.02 0.03 0.05
-------- ------- ------- ------- --------
Net earnings (loss) $(0.22) $(0.11) $(0.18) $0.09 $(0.42)
======== ======= ======= ======= ========
Diluted
Continuing operations $(0.22) $(0.12) $(0.20) $0.04 $(0.47)
Discontinued operations - 0.01 0.02 0.01 0.05
-------- ------- ------- ------- --------
Net earnings (loss) $(0.22) $(0.11) $(0.18) $0.05 $(0.42)
======== ======= ======= ======= ========
2006
-------------------------------
Qtr 1 Qtr 2 Qtr 3 Year
- ----------------------------------------------------------------------
Sales $202.4 $211.1 $209.1 $622.6
Cost of products sold 168.8 170.4 169.8 509.0
Cost of products sold related to
restructuring - 0.4 0.1 0.5
------- ------- ------- -------
Total cost of products sold 168.8 170.8 169.9 509.5
------- ------- ------- -------
Manufacturing margins 33.6 40.3 39.2 113.1
Other costs and expenses
Selling and administrative 34.2 38.3 35.3 107.8
Refinancing costs - - - -
Restructuring costs (a) 0.6 8.4 2.8 11.8
Other - net (0.1) (0.9) 0.6 (0.4)
------- ------- ------- -------
Total other costs and expenses 34.7 45.8 38.7 119.2
------- ------- ------- -------
Operating earnings (loss) (1.1) (5.5) 0.5 (6.1)
Interest expense - net (7.6) (7.9) (6.8) (22.3)
------- ------- ------- -------
Loss from continuing operations before
income taxes (8.7) (13.4) (6.3) (28.4)
Provision (benefit) from income taxes 0.9 0.9 0.9 2.7
------- ------- ------- -------
Earnings (loss) from continuing
operations (9.6) (14.3) (7.2) (31.1)
Discontinued operations - net of
income taxes (b)
Loss from operations - - - -
Net gain on divestitures - - - -
------- ------- ------- -------
Total discontinued operations - - - -
------- ------- ------- -------
Net earnings (loss) $(9.6) $(14.3) $(7.2) $(31.1)
======= ======= ======= =======
Earnings (loss) per common share
Basic
Continuing operations $(0.25) $(0.34) $(0.20) $(0.79)
Discontinued operations - - - -
------- ------- ------- -------
Net earnings (loss) $(0.25) $(0.34) $(0.20) $(0.79)
======= ======= ======= =======
Diluted
Continuing operations $(0.25) $(0.34) $(0.20) $(0.79)
Discontinued operations - - - -
------- ------- ------- -------
Net earnings (loss) $(0.25) $(0.34) $(0.20) $(0.79)
======= ======= ======= =======
(a) In 2006, represents costs related to the consolidation of the
global mold technologies and European plastics machinery businesses
to reduce their cost structures and improve customer service. In
2005, represents costs related to initiatives to reduce operating and
administrative costs.
(b) In 2005, represents adjustments of reserves related to prior
divestitures.
- ----------------------------------------------------------------
Historical Segment and Supplemental Information
- ----------------------------------------------------------------------
(In Millions)
2005
---------------------------------------
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
- ----------------------------------------------------------------------
Machinery technologies North
America
Sales $87.1 $95.4 $86.7 $107.3 $376.5
Operating cash flow (a) 3.5 6.5 5.8 7.8 23.6
Segment earnings 1.9 4.9 4.3 6.2 17.3
New orders 94.9 100.7 89.2 97.9 382.7
Machinery technologies Europe
Sales $34.3 $41.5 $36.8 $36.9 $149.5
Operating cash flow (a) (1.2) 0.6 (0.5) 0.4 (0.7)
Segment loss (2.2) (0.5) (1.5) (0.8) (5.0)
New orders 35.4 42.7 34.2 40.3 152.6
Mold technologies
Sales $44.2 $44.4 $40.6 $44.2 $173.4
Operating cash flow (a) 3.7 2.1 0.7 3.4 9.9
Segment earnings (loss) 2.3 0.7 (0.7) 1.6 3.9
New orders 45.1 43.4 40.7 44.5 173.7
Eliminations
Sales $(0.3) $(0.6) $(0.5) $(1.3) $(2.7)
New orders (0.4) (0.5) (0.4) (1.0) (2.3)
Total plastics technologies
Sales $165.3 $180.7 $163.6 $187.1 $696.7
Operating cash flow (a) 6.0 9.2 6.0 11.6 32.8
Segment earnings 2.0 5.1 2.1 7.0 16.2
New orders 175.0 186.3 163.7 181.7 706.7
Industrial fluids
Sales $27.0 $28.1 $27.1 $30.0 $112.2
Operating cash flow (a) 1.9 2.4 2.2 3.9 10.4
Segment earnings 1.4 1.9 1.8 3.6 8.7
New orders 27.0 28.2 27.1 29.8 112.1
Total continuing operations
Sales $192.3 $208.8 $190.7 $217.1 $808.9
Operating cash flow (a) 4.2 8.5 5.2 12.1 30.0
Segment earnings 3.4 7.0 3.9 10.6 24.9
Restructuring costs (b) (0.4) (0.3) (0.1) (0.8) (1.6)
Corporate expenses (3.5) (3.0) (3.0) (3.3) (12.8)
Other unallocated expenses (0.2) (0.1) (0.1) (0.1) (0.5)
------- ------- ------- ------- -------
Operating earnings (loss) (0.7) 3.6 0.7 6.4 10.0
Percent of sales -0.4% 1.7% 0.4% 2.9% 1.2%
New orders 202.0 214.5 190.8 211.5 818.8
Ending backlog 96.0 99.2 99.6 92.7 92.7
2006
-------------------------------
Qtr 1 Qtr 2 Qtr 3 Year
- ----------------------------------------------------------------------
Machinery technologies North America
Sales $94.1 $106.9 $105.7 $306.7
Operating cash flow (a) 2.9 6.0 7.5 16.4
Segment earnings 1.4 4.5 6.0 11.9
New orders 114.0 92.5 105.7 312.2
Machinery technologies Europe
Sales $36.3 $39.9 $39.8 $116.0
Operating cash flow (a) (1.6) (0.2) 0.3 (1.5)
Segment loss (2.4) (1.2) (0.7) (4.2)
New orders 40.0 42.9 30.9 113.8
Mold technologies
Sales $44.4 $38.9 $37.7 $121.1
Operating cash flow (a) 3.3 1.6 1.3 6.2
Segment earnings (loss) 1.9 0.3 - 2.1
New orders 43.7 38.5 37.7 119.9
Eliminations
Sales $(2.1) $(3.9) $(3.2) $(9.3)
New orders (2.3) (3.2) (2.7) (8.2)
Total plastics technologies
Sales $172.7 $181.8 $180.0 $534.5
Operating cash flow (a) 4.6 7.4 9.1 21.1
Segment earnings 0.9 3.6 5.3 9.8
New orders 195.4 170.7 171.6 537.7
Industrial fluids
Sales $29.7 $29.3 $29.1 $88.1
Operating cash flow (a) 2.3 3.3 2.2 7.8
Segment earnings 1.9 2.9 1.9 6.7
New orders 29.7 29.3 29.1 88.1
Total continuing operations
Sales $202.4 $211.1 $209.1 $622.6
Operating cash flow (a) 3.6 7.5 7.6 18.7
Segment earnings 2.8 6.5 7.2 16.5
Restructuring costs (b) (0.6) (8.8) (2.9) (12.3)
Corporate expenses (3.3) (3.1) (3.6) (10.0)
Other unallocated expenses - (0.1) (0.2) (0.3)
------- ------- ------- -------
Operating earnings (loss) (1.1) (5.5) 0.5 (6.1)
Percent of sales -0.5% -2.6% 0.2% -1.0%
New orders 225.1 200.0 200.7 625.8
Ending backlog 116.2 106.8 98.5 98.5
(a) Represents EBITDA (earnings before interest, income taxes,
depreciation and amortization) before restructuring costs.
(b) In 2006, represents costs related to the consolidation of the
global mold technologies and European plastics machinery businesses
to reduce their cost structures and improve customer service. In
2005, represents costs related to initiatives to reduce operating and
administrative costs.
- -------------------------------------------------------
Updated: November 3, 2006
Note: The amounts below are approximate working estimates, around
which an even wider range of numbers could be used for financial
modeling purposes. These estimates, by their nature, involve a great
number of risks and uncertainties. Actual results may differ as these
risks and uncertainties could significantly impact the company's
markets, products, and operations. For further information please
refer to the Cautionary Statement included in Item 2 of the company's
most recent Form 10-Q on file with the Securities and Exchange
Commission.
- ----------------------------------------------------------------------
Quarter Ended Year Ended
---------------- ----------------
(In millions, except Earnings per Dec. 31, 2006 Dec. 31, 2006
Share)
- ----------------------------------------------------------------------
Projected profit & loss items
Sales (1) $204 - 216 $827 - 839
Total plastics technologies 175 - 185 710 - 720
Industrial fluids 29 - 31 117 - 119
Segment earnings
Total plastics technologies 5 - 8 15 - 18
Industrial fluids 2 - 3 9 - 10
Corporate expenses 3 - 4 13 - 14
Interest expense - net 7.5 - 8.5 30 - 31
Provision for income taxes 1 4
Restructuring costs 4 - 7 16 - 19
Loss after tax (2) (14) - (5) (44) - (35)
Average shares outstanding -
basic 48 - 49 48 - 49
Average shares outstanding -
diluted 106 - 107 106 - 107
Earnings Per Share $(0.33) - (0.14) $(1.12) - (0.93)
Projected cash flow & balance sheet
items
Depreciation 4 - 5 17 - 18
Primary working capital - increase
(decrease) (3) (7) - (12) 6 - 1
Cash pension contribution 0 33
Liquidations and disposals 0 - 3 19 - 22
Capital expenditures 3 - 4 13 - 14
Cash interest 13 - 14 27 - 28
Cash dividends less than 1 less than 1
Cash tax refunds (payments) (1) - 0 1 - 2
Cash restructuring 3 - 4 9 - 10
1 Year ended Dec. 31, 2006 increased over the year ago period due to
the strengthening of the Euro of approximately $1 million, quarter
ended Dec. 31, 2006 decreased over the year ago quarter by less
than $1 million due to the weakening of the Euro.
2 Includes $2.8 million and $12.9 million of expenses related to the
U.S. defined benefit plan in quarter ended Dec. 31, 2006 and year
ended Dec. 31, 2006, respectively (versus $3.1 million and $12.3
million in quarter ended Dec. 31, 2005 and year ended Dec. 31
2005, respectively).
Includes $0.9 million and $4.8 million of expenses related to
Sarbanes-Oxley compliance in the quarter ended Dec. 31, 2006 and
the year ended Dec. 31, 2006, respectively (versus $1.9 million
and $7.3 million in quarter ended Dec. 31, 2005 and year ended
Dec. 31, 2005, respectively).
3 inventory + receivables - trade payables - advance billings
Comments & explanations
Assumes quarter ended Sept. 30, 2006 foreign exchange rates (e.g.,
USD/EUR = 1.265800), and no further acquisitions or divestitures.
CONTACT: Milacron Inc.
Al Beaupre, 513-487-5918
albert.beaupre@milacron.com