Exhibit 99.1
Milacron Narrows Loss in Second Quarter; Backlog, Operating Margins Rise
CINCINNATI--(BUSINESS WIRE)--Aug. 3, 2007--Milacron Inc. (NYSE:
MZ), a leading global supplier of plastics-processing technologies and
industrial fluids, today reported a net loss for the second-quarter
ending June 30 of $0.1 million, or $0.50 per share, on sales of $197
million. (Per share amounts include accrual for preferred dividends.)
This compares to a net loss of $14.3 million, or $3.45 per share, on
sales of $211 million in the second quarter of 2006. Results in the
second quarter of 2007 included a $4.9 million tax benefit and $1.5
million in restructuring costs with no tax benefit, whereas the
year-ago quarterly loss included a $0.9 million provision for income
taxes and $8.8 million in restructuring charges also without tax
benefit.
"Throughout the world our employees are working hard executing our
strategies and we are seeing positive benefits from these efforts,"
said Ronald D. Brown, chairman, president and chief executive officer.
"The previously announced cost-reduction measures are generating the
savings we projected. Moreover, we continue to achieve positive
results from our key sales growth initiatives: expanding our presence
in emerging markets, while focusing more attention on aftermarket
services in our traditional markets of North America and Western
Europe. Milacron's orders from emerging markets are up 23% over last
year and now constitute nearly one-quarter of our total business. And
our aftermarket sales have grown another 6% so far this year," he
said.
Sales and earnings growth in overseas markets continued to offset
the ongoing weakness in the automotive and housing sectors of the
North American economy. New orders in the quarter were $202 million,
compared to $200 million in the second quarter last year, with
favorable currency translation effects accounting for the increase.
The backlog of unfilled orders rose to $132 million, up from $127
million at the end of the first quarter and $107 million a year ago.
Manufacturing margins in the second quarter improved to 19.6% from
19.1% in the second quarter 2006, primarily as a result of
cost-reduction initiatives.
Cash on hand at the end of the quarter was in excess of $31
million, and the company had more than $33 million available for
borrowing under its asset-based revolving credit facility. Liquidity
(cash plus borrowing availability) of $65 million was down from $73
million at the beginning of the quarter. The change was primarily the
result of a semi-annual interest payment of $13 million made in May,
partially offset by primary working capital reductions during the
quarter.
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) Segment sales declined
to $92 million from $107 million in the second quarter last year, as
the North American market for injection molding machines was severely
impacted by continued weakness in the automotive sector. Equipment and
supplies for extrusion and blow molding posted solid gains in
shipments and profitability, while injection molding machinery in
India had record-high sales and earnings in the quarter. Helped by
these results and aggressive cost-containment measures in North
American injection molding machine operations, segment earnings rose
to $4.9 million, up significantly from $1.8 million in the first
quarter of this year and from $4.5 million in the year-ago quarter,
which included $2.9 million of expenses related to the triennial trade
show, NPE, held in June 2006. New orders of $90 million were off
slightly from $92 million in the second quarter last year. The backlog
of unfilled orders in this segment, however, remains high - more than
20% above year-ago levels, which bodes well for increased shipments in
the second half of the year.
Machinery Technologies-Europe (machinery and related parts and
services for injection molding and blow molding supplied from Europe)
Sales of $40 million were flat with those in the second quarter last
year, as currency gains and improved pricing offset volume reductions
in injection and blow molding equipment unit sales. Despite the lower
shipping volume, the segment generated a positive $0.3 million in
earnings compared to operating losses of $1.2 million both in the
second quarter a year ago and in the first quarter of 2007. Cost
savings from restructuring actions and sourcing benefits contributed
significantly to the improvement. Aided in part by favorable currency
translation effects, new orders rose to $45 million from $43 million
in the second quarter of 2006. The backlog continued to grow and by
quarter-end stood almost 40% higher than a year ago. When coupled with
generally positive economic conditions in Europe, our stronger backlog
and reduced cost structure should deliver progressively improving
results in this segment going forward.
Mold Technologies (mold bases and related parts and services, as
well as maintenance, repair and operating supplies for injection
molding worldwide) Sales in the second quarter of $36 million declined
from $39 million a year ago, reflecting continued weakness in the
North American market, particularly in automotive end markets and the
related tool-and-die and moldmaking sectors. The impact of lower sales
was partially mitigated by restructuring actions and other
cost-containment initiatives within manufacturing operations, as the
segment posted a loss of $0.8 million in the quarter compared to
earnings of $0.3 million a year ago. As the North American market
stabilizes, growth overseas and ongoing cost-reductions should lead to
improved sales and profitability in this business in the second half.
Industrial Fluids (water-based and oil-based coolants, lubricants
and cleaners for metalcutting and metalforming operations worldwide)
Sales of $32 million, versus $29 million a year ago, were a record
quarterly high for this segment, exceeding the previous peak quarter
by almost 9%. Sales were up in most major markets, as we continued to
develop and introduce new products, including vegetable-oil-based
"green" fluids, for new applications in a variety of non-automotive
industries such as aerospace and HVAC. Segment earnings of $3.2
million were up from $2.9 million in the year-ago quarter. Sales and
earnings in this segment are expected to show further growth in the
second half of the year on the strength of new product introductions
and expanded distribution in Asian and Eastern European markets.
Outlook
"With our increased backlog, Milacron is poised to show continued
quarterly improvement in sales and operating earnings in the second
half of the year. Outside of North America, we're enjoying good growth
in virtually all our major markets. And in North America we are
dealing with the current downturn through cost reductions and other
measures, all the while maintaining the resources needed to take
advantage of an eventual recovery. At this point we are projecting
approximately 3% overall sales growth in 2007, with significantly
improved operating profits," Brown said.
Dividends
No dividends were declared on Milacron's common stock. The board
declared a quarterly dividend of $10.00 per share on its 4% Series A
cumulative preferred stock. The company continues to accrue dividends
on its 6% Series B convertible preferred stock. Milacron currently has
outstanding: 6,000 shares of 4% cumulative preferred stock, 500,000
shares of 6% Series B convertible preferred stock, and approximately
5.5 million shares of common stock.
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. EDT, 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
913-981-4901 or 800-811-0667. A recording of the conference call will
be available from 4:00 p.m. today through midnight August 17 on
Milacron's website or by phone: (719) 457-0820 or (888) 203-1112 and
providing the access code: 1514242.
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
Second Quarter 2007
- ----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ---------------------------
2007 2006 2007 2006
- ----------------------------------------------------------------------
Sales $197,295,000 $ 211,122,000 $ 387,597,000 $ 413,519,000
Loss from
continuing
operations (388,000) (14,280,000) (11,052,000) (23,905,000)
Per Share
Basic (0.55) (3.45) (3.21) (5.94)
Diluted (0.55) (3.45) (3.21) (5.94)
Earnings from
discontinued
operations 265,000 - 135,000 17,000
Per Share
Basic 0.05 - 0.03 -
Diluted 0.05 - 0.03 -
Net loss (123,000) (14,280,000) (10,917,000) (23,888,000)
Per Share
Basic (0.50) (3.45) (3.18) (5.94)
Diluted (0.50) (3.45) (3.18) (5.94)
Common shares
Weighted
average
outstanding
for basic
EPS 4,925,000 4,822,000 4,910,000 4,812,000
Weighted
average
outstanding
for diluted
EPS 4,925,000 4,822,000 4,910,000 4,812,000
Outstanding
at quarter
end 5,493,000 5,141,000 5,493,000 5,141,000
- ----------------------------------------------------------------------
Notes:
These statements are unaudited and subject to year-end adjustments.
The common share amounts, including the weighted average outstanding
shares upon which per-share amounts are based, include the effect for
the one-for-ten reverse stock split that became effective on May 16,
2007.
Per-share amounts include accruals for preferred
dividends and effect of beneficial conversion feature.
Consolidated Earnings
Milacron Inc. and Subsidiaries
Second Quarter 2007
- ----------------------------------------------------------------------
(In millions, except per-share data) Three Months
Ended Six Months Ended
June 30, June 30,
--------------- ----------------
2007 2006 2007 2006
- ----------------------------------------------------------------------
Sales $197.3 $211.1 $387.6 $ 413.5
Cost of products sold 158.6 170.4 313.4 339.2
Cost of products sold related to
restructuring - 0.4 - 0.4
------- ------- ------- --------
Total cost of products sold 158.6 170.8 313.4 339.6
------- ------- ------- --------
Manufacturing margins 38.7 40.3 74.2 73.9
Percent of sales 19.6% 19.1% 19.1% 17.9%
Other costs and expenses
Selling and administrative 34.9 38.3 70.2 72.5
Restructuring costs 1.5 8.4 3.9 9.0
Other income - net (0.3) (0.9) (0.5) (1.0)
------- ------- ------- --------
Total other costs and expenses 36.1 45.8 73.6 80.5
------- ------- ------- --------
Operating earnings (loss) 2.6 (5.5) 0.6 (6.6)
Interest expense - net (7.9) (7.9) (15.6) (15.5)
------- ------- ------- --------
Loss from continuing operations
before income taxes (5.3) (13.4) (15.0) (22.1)
Provision (benefit) for income taxes (4.9) 0.9 (3.9) 1.8
------- ------- ------- --------
Loss from continuing operations (0.4) (14.3) (11.1) (23.9)
Discontinued operations - net of
income taxes (a) 0.3 - 0.2 -
------- ------- ------- --------
Net loss $ (0.1) $(14.3) $(10.9) $ (23.9)
======= ======= ======= ========
Loss per common share - basic and
diluted
Continuing operations $(0.55) $(3.45) $(3.21) $ (5.94)
Discontinued operations 0.05 - 0.03 -
------- ------- ------- --------
Net loss $(0.50) $(3.45) $(3.18) $ (5.94)
======= ======= ======= ========
(a) In 2007, represents adjustments of reserves related to prior
divestitures.
- ----------------------------------------------------------------------
Notes:
These statements are unaudited and subject to year-end adjustments.
The weighted average outstanding shares upon which per-share amounts
are based include the effect for the one-for-ten reverse stock split
that became effective on May 16, 2007.
Per-share amounts include accruals for preferred dividends and effect
of beneficial conversion feature.
Consolidated Balance Sheets
Milacron Inc. and Subsidiaries
Second Quarter 2007
- ----------------------------------------------------------------------
(In millions) June 30, June 30,
2007 2006
- ----------------------------------------------------------------------
Assets
Cash and cash equivalents $ 31.3 $ 41.9
Notes and accounts receivable-net 115.5 119.9
Inventories 173.1 176.7
Other current assets 47.7 43.4
-------- --------
Total current assets 367.6 381.9
Property, plant and equipment - net 110.8 117.1
Goodwill 88.4 86.1
Other noncurrent assets 88.2 99.5
-------- --------
Total assets $ 655.0 $ 684.6
======== ========
Liabilities and shareholders' deficit
Short-term borrowings and long-term debt due within
one year (a) $ 34.4 $ 13.0
Trade accounts payable and advance billings and
deposits 105.4 102.9
Accrued and other current liabilities 76.0 84.1
-------- --------
Total current liabilities 215.8 200.0
Long-term accrued liabilities 231.5 271.6
Long-term debt 232.5 232.6
Shareholders' deficit (24.8) (19.6)
-------- --------
Total liabilities and shareholders' deficit $ 655.0 $ 684.6
======== ========
(a) In 2007, $29 million was drawn against the revolving credit
facility and in 2006, there was $8.0 million drawn against the
revolving credit facility. Outstanding letters of credit were $6
million in 2007 and $8.0 million in 2006.
- ----------------------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Consolidated Cash Flows
Milacron Inc. and Subsidiaries
Second Quarter 2007
- ----------------------------------------------------------------------
(In millions) Three Months Six Months
Ended Ended
June 30, June 30,
-------------- ---------------
2007 2006 2007 2006
- ----------------------------------------------------------------------
Increase (decrease) in cash and cash
equivalents
Operating activities cash flows
Net loss $(0.1) $(14.3) $(10.9) $(23.9)
Discontinued operations - net of
income taxes (0.3) - (0.2) -
Depreciation and amortization 4.1 4.2 8.1 8.3
Restructuring costs 0.2 3.2 0.5 3.7
Working capital changes
Notes and accounts receivable (5.0) 1.8 (0.1) 0.6
Inventories (2.2) (5.9) (2.5) (12.6)
Other current assets (4.7) 1.8 (5.4) 1.7
Trade accounts payable 8.4 (3.0) 0.3 5.5
Other current liabilities (3.3) (8.2) (4.4) (2.3)
Deferred income taxes and other -
net (1.0) 12.4 4.0 15.3
------ ------- ------- -------
Net cash used by operating
activities (3.9) (8.0) (10.6) (3.7)
Investing activities cash flows
Capital expenditures (2.1) (3.9) (3.7) (7.6)
Net disposals of property, plant and
equipment 0.1 - 0.2 -
------ ------- ------- -------
Net cash used by investing
activities (2.0) (3.9) (3.5) (7.6)
Financing activities cash flows
Repayments of long-term debt (0.2) (0.4) (0.4) (1.0)
Increase in short-term borrowings 2.3 7.9 6.6 6.1
Dividends paid - (0.1) (0.1) (0.1)
------ ------- ------- -------
Net cash provided by financing
activities 2.1 7.4 6.1 5.0
Effect of exchange rate fluctuations on
cash
and cash equivalents 0.6 1.8 0.8 2.5
------ ------- ------- -------
Decrease in cash and cash equivalents (3.2) (2.7) (7.2) (3.8)
Cash and cash equivalents at beginning
of period 34.5 44.6 38.5 45.7
------ ------- ------- -------
Cash and cash equivalents at end of
period $31.3 $ 41.9 $ 31.3 $ 41.9
====== ======= ======= =======
- ----------------------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Segment and Supplemental Information
Milacron Inc. and Subsidiaries
Second Quarter 2007
- ----------------------------------------------------------------------
(In millions) Three Months
Ended Six Months Ended
June 30, June 30,
-------------- ----------------
2007 2006 2007 2006
- ----------------------------------------------------------------------
Machinery technologies North America
Sales $ 91.5 $106.9 $ 182.6 $ 201.0
Operating cash flow (a) 6.5 6.0 9.9 8.9
Segment earnings 4.9 4.5 6.7 5.9
Percent of sales 5.4% 4.2% 3.7% 2.9%
New orders 90.1 92.5 188.0 206.5
Machinery technologies Europe
Sales $ 40.2 $ 39.9 $ 74.6 $ 76.2
Operating cash flow (a) 1.2 (0.2) 1.0 (1.8)
Segment earnings (loss) 0.3 (1.2) (0.9) (3.6)
Percent of sales 0.7% -3.0% -1.2% -4.7%
New orders 45.1 42.9 91.7 82.9
Mold technologies
Sales $ 35.8 $ 38.9 $ 73.7 $ 83.3
Operating cash flow (a) 0.3 1.6 1.7 4.9
Segment earnings (loss) (0.8) 0.3 (0.5) 2.2
Percent of sales -2.2% 0.8% -0.7% 2.6%
New orders 36.5 38.5 73.2 82.2
Eliminations
Sales $ (2.4) $(3.9) $ (5.2) $ (6.0)
New orders (2.1) (3.2) (4.9) (5.5)
Total plastics technologies
Sales $ 165.1 $181.8 $ 325.7 $ 354.5
Operating cash flow (a) 8.0 7.4 12.6 12.0
Segment earnings 4.4 3.6 5.3 4.5
Percent of sales 2.7% 2.0% 1.6% 1.3%
New orders 169.6 170.7 348.0 366.1
Industrial fluids
Sales $ 32.2 $ 29.3 $ 61.9 $ 59.0
Operating cash flow (a) 3.6 3.3 7.2 5.6
Segment earnings 3.2 2.9 6.5 4.8
Percent of sales 9.9% 9.9% 10.5% 8.1%
New orders 32.2 29.3 61.9 59.0
Total continuing operations
Sales $ 197.3 $211.1 $ 387.6 $ 413.5
Operating cash flow (a) 8.2 7.5 12.6 11.1
Segment earnings 7.6 6.5 11.8 9.3
Restructuring costs (1.5) (8.8) (3.9) (9.4)
Corporate expenses (3.4) (3.1) (7.1) (6.4)
Other unallocated expenses (0.1) (0.1) (0.2) (0.1)
------- ------ ------- --------
Operating earnings (loss) 2.6 (5.5) 0.6 (6.6)
Percent of sales 1.3% -2.6% 0.2% -1.6%
New orders 201.8 200.0 409.9 425.1
Ending backlog 132.1 106.8 132.1 106.8
(a) Represents EBITDA (earnings before interest, income taxes,
depreciation and amortization) before restructuring costs.
- ----------------------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
Reconciliation of Earnings to Operating Cash Flows
Milacron Inc. and Subsidiaries
Second Quarter 2007
- ----------------------------------------------------------------------
(In millions) Three Months Six Months
Ended Ended
June 30, June 30,
-------------- ---------------
2007 2006 2007 2006
- ----------------------------------------------------------------------
Machinery technologies North America
Segment earnings $ 4.9 $ 4.5 $ 6.7 $ 5.9
Depreciation and amortization 1.6 1.5 3.2 3.0
------ ------- ------- -------
Operating cash flow 6.5 6.0 9.9 8.9
Machinery technologies Europe
Segment earnings (loss) $ 0.3 $ (1.2) $ (0.9) $ (3.6)
Depreciation and amortization 0.9 1.0 1.9 1.8
------ ------- ------- -------
Operating cash flow 1.2 (0.2) 1.0 (1.8)
Mold technologies
Segment earnings (loss) $(0.8) $ 0.3 $ (0.5) $ 2.2
Depreciation and amortization 1.1 1.3 2.2 2.7
------ ------- ------- -------
Operating cash flow 0.3 1.6 1.7 4.9
Total plastics technologies
Segment earnings $ 4.4 $ 3.6 $ 5.3 $ 4.5
Depreciation and amortization 3.6 3.8 7.3 7.5
------ ------- ------- -------
Operating cash flow 8.0 7.4 12.6 12.0
Industrial fluids
Segment earnings $ 3.2 $ 2.9 $ 6.5 $ 4.8
Depreciation and amortization 0.4 0.4 0.7 0.8
------ ------- ------- -------
Operating cash flow 3.6 3.3 7.2 5.6
Total continuing operations
Net loss $(0.1) $(14.3) $(10.9) $(23.9)
Discontinued operations - net of
income taxes (a) (0.3) - (0.2) -
Provision (benefit) for income taxes (4.9) 0.9 (3.9) 1.8
Interest expense - net 7.9 7.9 15.6 15.5
Restructuring costs 1.5 8.8 3.9 9.4
Depreciation and amortization 4.1 4.2 8.1 8.3
------ ------- ------- -------
Operating cash flow $ 8.2 $ 7.5 $ 12.6 $ 11.1
====== ======= ======= =======
(a) In 2007, represents adjustments of reserves related to prior
divestitures.
- ----------------------------------------------------------------------
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 (a) - - - - -
Restructuring costs (b) 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 (c)
Net gain (loss) 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 $(2.24)$(1.24)$(1.92)$ 0.62 $(4.77)
Discontinued operations - 0.12 0.15 0.26 0.53
-----------------------------------
Net earnings (loss) $(2.24)$(1.12)$(1.77)$ 0.88 $(4.24)
===================================
Diluted
Continuing operations $(2.24)$(1.24)$(1.92)$ 0.42 $(4.77)
Discontinued operations - 0.12 0.15 0.12 0.53
-----------------------------------
Net earnings (loss) $(2.24)$(1.12)$(1.77)$ 0.54 $(4.24)
===================================
2006
------------------------------------
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
--------------------------------------------------------------------
Sales $202.4 $211.1 $209.1 $197.5 $ 820.1
Cost of products sold 168.8 170.4 169.8 159.2 668.2
Cost of products sold related to
restructuring - 0.4 0.1 - 0.5
------------------------------------
Total cost of products sold 168.8 170.8 169.9 159.2 668.7
------------------------------------
Manufacturing margins 33.6 40.3 39.2 38.3 151.4
Other costs and expenses
Selling and administrative 34.2 38.3 35.3 32.4 140.2
Refinancing costs (a) - - - 1.8 1.8
Restructuring costs (b) 0.6 8.4 2.8 5.1 16.9
Other - net (0.1) (0.9) 0.6 0.1 (0.3)
------------------------------------
Total other costs and
expenses 34.7 45.8 38.7 39.4 158.6
------------------------------------
Operating earnings (loss) (1.1) (5.5) 0.5 (1.1) (7.2)
Interest expense - net (7.6) (7.9) (6.8) (7.7) (30.0)
------------------------------------
Loss from continuing operations
before income taxes (8.7) (13.4) (6.3) (8.8) (37.2)
Provision (benefit) from income
taxes 0.9 0.9 0.9 (0.1) 2.6
------------------------------------
Earnings (loss) from continuing
operations (9.6) (14.3) (7.2) (8.7) (39.8)
Discontinued operations - net of
income taxes (c)
Net gain (loss) on divestitures - - - 0.1 0.1
------------------------------------
Total discontinued operations - - - 0.1 0.1
------------------------------------
Net earnings (loss) $ (9.6)$(14.3)$ (7.2)$ (8.6)$ (39.7)
====================================
Earnings (loss) per common share
Basic
Continuing operations $(2.49)$(3.45)$(1.97)$(2.27)$(10.17)
Discontinued operations - - - 0.02 0.02
------------------------------------
Net earnings (loss) $(2.49)$(3.45)$(1.97)$(2.25)$(10.15)
====================================
Diluted
Continuing operations $(2.49)$(3.45)$(1.97)$(2.27)$(10.17)
Discontinued operations - - - 0.02 0.02
------------------------------------
Net earnings (loss) $(2.49)$(3.45)$(1.97)$(2.25)$(10.15)
====================================
2007
---------------------
Qtr 1 Qtr 2 Year
--------------------------------------------------------------------
Sales $190.3 $197.3 $387.6
Cost of products sold 154.8 158.6 313.4
Cost of products sold related to restructuring - - -
---------------------
Total cost of products sold 154.8 158.6 313.4
---------------------
Manufacturing margins 35.5 38.7 74.2
Other costs and expenses
Selling and administrative 35.3 34.9 70.2
Refinancing costs (a) - - -
Restructuring costs (b) 2.4 1.5 3.9
Other - net (0.2) (0.3) (0.5)
---------------------
Total other costs and expenses 37.5 36.1 73.6
---------------------
Operating earnings (loss) (2.0) 2.6 0.6
Interest expense - net (7.7) (7.9) (15.6)
---------------------
Loss from continuing operations before income
taxes (9.7) (5.3) (15.0)
Provision (benefit) from income taxes 1.0 (4.9) (3.9)
---------------------
Earnings (loss) from continuing operations (10.7) (0.4) (11.1)
Discontinued operations - net of income taxes
(c)
Net gain (loss) on divestitures (0.1) 0.3 0.2
---------------------
Total discontinued operations (0.1) 0.3 0.2
---------------------
Net earnings (loss) $(10.8)$ (0.1)$(10.9)
=====================
Earnings (loss) per common share
Basic
Continuing operations $(2.66)$(0.55)$(3.21)
Discontinued operations (0.02) 0.05 0.03
---------------------
Net earnings (loss) $(2.68)$(0.50)$(3.18)
=====================
Diluted
Continuing operations $(2.66)$(0.55)$(3.21)
Discontinued operations (0.02) 0.05 0.03
---------------------
Net earnings (loss) $(2.68)$(0.50)$(3.18)
=====================
(a) In 2006, represents the write-off of unamortized deferred
refinancing fees.
(b) In 2006 and 2007, relates principally to costs for 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.
(c) All years, represents adjustments of reserves related to prior
divestitures.
------------------------------------------------------------------
Notes:
These statements are unaudited and subject to year-end
adjustments.
The weighted average outstanding shares upon which per-share
amounts are based include the effect for the one-for-ten reverse
stock split that became effective on May 16, 2007.
Per-share amounts include accruals for preferred dividends and
effect of beneficial conversion feature.
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 earnings (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
(c) (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 Qtr 4 Year
---------------------------------------------------------------------
Machinery technologies North
America
Sales $ 94.1 $106.9 $105.7 $ 95.7 $402.4
Operating cash flow (a) 2.9 6.0 7.5 6.8 23.2
Segment earnings 1.4 4.5 6.0 5.2 17.1
New orders 114.0 92.5 105.7 98.8 411.0
Machinery technologies Europe
Sales $ 36.3 $ 39.9 $ 39.8 $ 37.4 $153.4
Operating cash flow (a) (1.6) (0.2) 0.3 0.4 (1.1)
Segment earnings (loss) (2.4) (1.2) (0.7) (0.6) (4.9)
New orders 40.0 42.9 30.9 40.3 154.1
Mold technologies
Sales $ 44.4 $ 38.9 $ 37.7 $ 37.8 $158.8
Operating cash flow (a) 3.3 1.6 1.3 2.0 8.2
Segment earnings (loss) 1.9 0.3 - 0.8 3.0
New orders 43.7 38.5 37.7 37.9 157.8
Eliminations
Sales $ (2.1) $ (3.9) $ (3.2) $ (2.8) $(12.0)
New orders (2.3) (3.2) (2.7) (3.4) (11.6)
Total plastics technologies
Sales $172.7 $181.8 $180.0 $168.1 $702.6
Operating cash flow (a) 4.6 7.4 9.1 9.2 30.3
Segment earnings 0.9 3.6 5.3 5.4 15.2
New orders 195.4 170.7 171.6 173.6 711.3
Industrial fluids
Sales $ 29.7 $ 29.3 $ 29.1 $ 29.4 $117.5
Operating cash flow (a) 2.3 3.3 2.2 4.5 12.3
Segment earnings 1.9 2.9 1.9 4.1 10.8
New orders 29.7 29.3 29.1 29.4 117.5
Total continuing operations
Sales $202.4 $211.1 $209.1 $197.5 $820.1
Operating cash flow (a) 3.6 7.5 7.6 10.1 28.8
Segment earnings 2.8 6.5 7.2 9.5 26.0
Restructuring costs (b) (0.6) (8.8) (2.9) (5.1) (17.4)
Corporate expenses (3.3) (3.1) (3.6) (3.6) (13.6)
Other unallocated expenses
(c) - (0.1) (0.2) (1.9) (2.2)
----------------------------------------
Operating earnings (loss) (1.1) (5.5) 0.5 (1.1) (7.2)
Percent of sales -0.5% -2.6% 0.2% -0.6% -0.9%
New orders 225.1 200.0 200.7 203.0 828.8
Ending backlog 116.2 106.8 98.5 105.7 105.7
2007
------------------------
Qtr 1 Qtr 2 Year
---------------------------------------------------------------------
Machinery technologies North America
Sales $ 91.1 $ 91.5 $182.6
Operating cash flow (a) 3.4 6.5 9.9
Segment earnings 1.8 4.9 6.7
New orders 97.9 90.1 188.0
Machinery technologies Europe
Sales $ 34.4 $ 40.2 $ 74.6
Operating cash flow (a) (0.2) 1.2 1.0
Segment earnings (loss) (1.2) 0.3 (0.9)
New orders 46.6 45.1 91.7
Mold technologies
Sales $ 37.9 $ 35.8 $ 73.7
Operating cash flow (a) 1.4 0.3 1.7
Segment earnings (loss) 0.3 (0.8) (0.5)
New orders 36.7 36.5 73.2
Eliminations
Sales $ (2.8) $ (2.4) $ (5.2)
New orders (2.8) (2.1) (4.9)
Total plastics technologies
Sales $160.6 $165.1 $325.7
Operating cash flow (a) 4.6 8.0 12.6
Segment earnings 0.9 4.4 5.3
New orders 178.4 169.6 348.0
Industrial fluids
Sales $ 29.7 $ 32.2 $ 61.9
Operating cash flow (a) 3.6 3.6 7.2
Segment earnings 3.3 3.2 6.5
New orders 29.7 32.2 61.9
Total continuing operations
Sales $190.3 $197.3 $387.6
Operating cash flow (a) 4.4 8.2 12.6
Segment earnings 4.2 7.6 11.8
Restructuring costs (b) (2.4) (1.5) (3.9)
Corporate expenses (3.7) (3.4) (7.1)
Other unallocated expenses (c) (0.1) (0.1) (0.2)
------------------------
Operating earnings (loss) (2.0) 2.6 0.6
Percent of sales -1.1% 1.3% 0.2%
New orders 208.1 201.8 409.9
Ending backlog 126.6 132.1 132.1
(a) Represents EBITDA (earnings before interest, income taxes,
depreciation and amortization) before restructuring costs.
(b) In 2006 and 2007, relates principally to costs for 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.
(c) In fourth quarter 2006, includes $1.7 million for writing-off
unamortized deferred refinancing fees.
- ----------------------------------------------------------------------
Note: These statements are unaudited and subject to year-end
adjustments.
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
----------------
(In millions) September 30,
2007
- ----------------------------------------------------------------------
Projected profit & loss items
Sales (1) $210 - 223
Total plastics technologies 180 - 190
Industrial fluids 30 - 33
Segment earnings
Total plastics technologies 4 - 6
Industrial fluids 3 - 5
Corporate expenses 3 - 4
Interest expense - net 7 - 8
Provision for (benefit from) income taxes 0 - (1)
Restructuring costs 1
Net earnings (loss) after tax (2) (6) - 2
Average shares outstanding - basic 5
Average shares outstanding - diluted 11
Earnings per share (3) $(1.66) - $0.18
Projected cash flow & balance sheet items
Depreciation and amortization 4 - 5
Primary working capital - increase (4) 5 - 10
Cash pension contribution 0
Capital expenditures 3 - 4
Cash interest less than 1
Cash dividends less than 1
Cash tax less than 1
Cash refinancing fees 0
Cash restructuring less than 1
1 Increased over the same period a year ago due to the strengthening
of the Euro of approximately $5 million.
2 Includes $2.7 million of non-cash expense related to the U.S
defined benefit plan in quarter ended September 30, 2007 (versus
$3.3 million in quarter ended September 30, 2006).
Includes $1.2 million of expense related to Sarbanes-Oxley
compliance in the quarter ended September 30, 2007 (versus $1.3
million in quarter ended September 30, 2006).
3 Per share amounts include accruals for preferred dividends and
effect of beneficial conversion feature.
4 Inventory + receivables - trade payables - advance billings
Comments & explanations
Assumes quarter ended June 30, 2007 foreign exchange rates (e.g.,
USD/EUR = 1.3452), and no further acquisitions or divestitures.
CONTACT: Milacron Inc.
Al Beaupre, 513-487-5918
albert.beaupre@milacron.com