Milacron Reports 2Q Results (Corrected)

Milacron Inc., Cincinnati, OH, supplier of plastics-processing technologies and industrial fluids, reported a net loss for the second quarter ended June 30, 2007, of $0.1 million. Sales were $197 million.

CEO Ronald D. Brown said: “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."

Sales and earnings growth in overseas markets continued to offset the ongoing weakness in the automotive and housing sectors in North America. New orders in the quarter were $202 million, compared with $200 million in the second quarter last year. 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.

Machinery Technologies-North America

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. New orders of $90 million were off slightly from $92 million in the second quarter last year. he 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

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

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.

Industrial Fluids

Sales of $32 million, versus $29 million a year ago, exceeded the previous peak quarter by almost 9%. Sales were up in most major markets, as the company 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.

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