The 2020 Mid-Year Economic Update_long

Milacron Reports Net Loss for 2006


Milacron Inc., Cincinnati, OH, reported a net loss for the year of $39.7 million, compared with a net loss of $14 million in 2005.


Sales in 2006 reached $820 million, up from $809 million in 2005. New orders were $828 million compared to $819 million in the prior year.


In the fourth quarter of 2006 of $8.6 million, including $5.1 million in restructuring costs and $1.8 million in refinancing charges. This compared to net earnings in the fourth quarter of 2005 of $5.8 million, which included a $5.5 million tax benefit.


Fourth quarter sales were $198 million, down from $217 million in the year-ago quarter. New orders were $203 million, compared to $212 million in 2005. The bulk of new orders came late in the quarter, which negatively impacted ...

Milacron Inc., Cincinnati, OH, reported a net loss for the year of $39.7 million, compared with a net loss of $14 million in 2005.


Sales in 2006 reached $820 million, up from $809 million in 2005. New orders were $828 million compared to $819 million in the prior year.


In the fourth quarter of 2006 of $8.6 million, including $5.1 million in restructuring costs and $1.8 million in refinancing charges. This compared to net earnings in the fourth quarter of 2005 of $5.8 million, which included a $5.5 million tax benefit.


Fourth quarter sales were $198 million, down from $217 million in the year-ago quarter. New orders were $203 million, compared to $212 million in 2005. The bulk of new orders came late in the quarter, which negatively impacted fourth-quarter shipments.


Segment Results
Machinery Technologies-North America New orders of $99 million were comparable to orders of $98 million in the fourth quarter of 2005. Sales, however, fell to $96 million from $107 million reflecting soft demand for injection molding equipment particularly from the automotive sector.


For the year 2006, new orders in this segment were $411 million, up 7% from $383 million in 2005. Sales also rose 7% to $402 million. Segment earnings were $17.1 million compared to $17.3 million in 2005, as benefits from higher volumes were offset by higher marketing costs.


Machinery Technologies-Europe Fourth quarter new orders of $40 million and sales of $37 million were flat with those of the year-ago quarter despite favorable currency translation effects. This segment lost $0.6 million in the quarter compared to a loss of $0.8 million in the fourth quarter of 2005.


For the year, this segment’s new orders were $154 million, up $1 million from 2005, while sales were $153 million, up from $150 million. For 2006, the segment posted an operating loss of $4.9 million compared to a loss of $5.0 million a year ago.


Mold Technologies Sales in the fourth quarter of 2006 were $38 million compared to $44 million in the fourth quarter of 2005, reflecting declines primarily in North American markets. Cost cutting measures mitigated the decline in segment earnings, which fell to $0.8 million from $1.6 million in the year-ago quarter.


Sales in 2006 were $159 million, down from $173 million in the prior year. Segment earnings declined to $3.0 million from $3.9 million, as benefits of restructuring and other cost reductions offset most of the effects of lower volume.


Industrial Fluids Fourth quarter sales were $29 million compared to $30 million a year ago, as price increases and favorable currency translation effects were offset by lower shipping volumes. Segment earnings improved to $4.1 million from $3.6 million, thanks primarily to improved pricing.


Industrial fluid sales in 2006 were $117 million, up from $112 million in 2005, as price increases compensated for volume declines. Segment earnings improved to $10.8 million versus $8.7 million in 2005, reflecting improved pricing and operating efficiency.


Outlook
“Energy and resin prices have declined from historic highs and appear to be stabilizing, said Ronald D. Brown, chairman, president and CEO. “These trends should benefit plastics processors and, as their profitability improves, enable them to invest in new machinery to replace their aging equipment and increase productivity. At the same time, however, the health of processors supplying U.S. automakers and pressures from consolidation in that industry have dampened demand in a large segment of the market. Overall, we are cautiously optimistic with respect to 2007, as we believe economic fundamentals will continue to favor recovery in plastics processing industries worldwide.


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