Milacron Inc., Cincinnati, OH, global supplier of plastics-processing technologies and industrial fluids, reported a net loss for the quarter ended Sept. 30, 2008, of $2.6 million, compared with a net loss of $4.5 million in the prior-year period.
Sales in the most recent quarter were $195 million, down 4%. New orders of $191 million declined 6%, reflecting lower demand for plastics processing equipment in the automotive and construction industries in North America.
Machinery Technologies-North America sales in the quarter were essentially flat versus the same period last year at $92 million, as depressed U.S. automotive and construction markets dampened sales of injection and extrusion equipment. Sales of blow molding systems improved, as did injection machinery sales in Asia. New orders in the quarter were $82 million, off from $91 million last year.
Machinery Technologies-Europe saw declining demand for injection molding machines in Western Europe, accounting for a sharp drop in segment sales to $38 million from $46 million in 2007. Blow molding machine shipments were flat. Lower sales volume led to a segment operating loss of $1.9 million compared to a small operating profit of $0.9 million in the year-ago quarter. New orders picked up toward the end of the quarter, however, and came in at $45 million versus $46 million in 2007.
Mold Technologies saw softness in both North America and Western Europe, much of it from the automotive sector. The segment recorded a sales decline in the third quarter to $35 million from $37 million a year ago. Restructuring and other efficiency improvements helped this segment post a modest $0.7 million profit compared to a loss of $0.4 million in the year-ago quarter.
Industrial Fluids sales were $33 million, up from $31 million in the third quarter of 2007, with currency translation effects accounting for two-thirds of the increase. Segment earnings were $3.4 million, down slightly compared to $3.5 million a year ago as the timing of material cost increases outpaced pricing and other cost reduction initiatives within the quarter.
The uncertainty of the global credit markets and the impact on our customers makes it difficult to have any degree of certainty with respect to our future guidance,”said CEO Ronald D. Brown. “In this environment, we will continue to focus on cash conservation and opportunities for further cost reductions.”
