Milacron Inc. (NYSE: MZ) today reported a net loss in the fourth
quarter of 2007 of $73.4 million, or $14.66 per diluted share,
caused primarily by a non-cash writedown of deferred tax assets of
$63.0 million associated with the change of ownership of the
majority of the company�s preferred stock, as announced in October.
The loss also included $7.4 million in restructuring charges, $1.9
million in one-time costs related to the curtailment of the
company�s U.S. pension plan, as well as $1.4 million in expenses
related to the preferred stock transaction. This compared to a net
loss in the fourth quarter of 2006 of $8.6 million, or $2.25 per
diluted share, which included $5.1 million in restructuring costs
and $1.8 million in refinancing charges. �We continue to make solid
progress throughout the company in terms of our restructuring and
other cost reduction initiatives,� Ronald D. Brown, chairman,
president and chief executive officer, said. �Our manufacturing
margins and operating cash flow or EBITDA (see reconciliation
table) are both up significantly from the year-ago quarter. And our
efforts to expand Milacron�s presence in faster-growing markets of
the world are also paying off. In fact, our sales to markets
outside the U.S., Canada and Western Europe are up well in excess
of 20% and now represent about 25% of our total sales.� These gains
in non-traditional markets helped offset declines in North America,
as fourth quarter 2007 sales reached $217 million, up 10% from $198
million in the year-ago quarter. About half of the sales increase
came as a result of favorable currency translation effects. New
orders in the quarter were $213 million, up from $203 million in
2006, entirely due to currency translation. Aided by favorable
resolutions of long-standing product liability claims and the
benefits of restructuring and product cost reduction initiatives,
manufacturing margins in the quarter rose to 22.3%, up from 19.4%
in the year ago quarter. Net cash provided by operations during the
quarter was $9.6 million, compared to a use of cash by operations
of $0.8 million in the fourth quarter of 2006. At the end of the
quarter, Milacron had $41 million in cash, up $3 million from the
beginning of the quarter. The company also had $34 million in
borrowing availability under its North American revolving credit
agreement, down from $42 million at the beginning of the quarter.
Year 2007 Milacron�s net loss for the year was $88.8 million, or
$19.59 per share. This included the writedown of tax assets of
$63.0 million, restructuring charges of $12.5 million, $1.9 million
in one-time costs for pension plan curtailment, as well as $1.9
million in expenses for the preferred stock transaction. In 2006,
Milacron lost $39.7 million, or $10.15 per share, which included
$17.4 million in restructuring costs and $1.8 million in
refinancing charges. Operating earnings in 2007 improved to $3.1
million, up from a loss of $7.2 million in 2006. Sales in 2007 fell
to $808 million from $820 million in 2006, while new orders were
$826 million, down slightly from $828 million in the prior year.
2007 sales and new orders were helped by approximately $29 million
in favorable currency translation effects. Throughout 2007,
Milacron faced severe declines in two of its largest markets in
North America: injection molding machinery and mold technologies,
which have been impacted by the shakeout in U.S. auto parts
suppliers and the decline in new housing starts. During the year,
however, restructuring measures helped reduce overall operating
expenses by $12 million, while global redesign and sourcing
initiatives cut product costs by $6 million. To further soften the
impact of the downturn in capital spending in North America,
Milacron focused on growing aftermarket sales, which approached
$200 million and grew to represent 36% of total machinery sales.
The company also accelerated efforts to further penetrate markets
outside the U.S., Canada and Western Europe. As a result, sales to
these non-traditional markets rose to $187 million in 2007, up 27%
over 2006. Continued cost reductions and efficiency improvements
helped raise manufacturing margins in 2007 to 20.2%, a significant
increase over 18.5% in 2006. Net cash provided by operations for
the year was $9.6 million, compared to a use of cash by operations
of $19.2 million 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] Despite favorable currency
translation effects, new orders of $99 million were flat with those
in the fourth quarter of 2006, while sales fell to $92 million from
$96 million reflecting soft demand for injection molding equipment
in North America, particularly from the automotive sector. Blow
molding equipment sales were off slightly, while sales of extrusion
systems and related parts and services continued to rise, and
machinery operations in India had record sales and profits. As a
result of the overall volume drop, segment earnings fell to $0.8
million, from $5.2 million in the year-ago quarter. For the year
2007, new orders in this segment were $378 million, down from $411
million in 2006. Sales also declined to $367 million from $402
million. Lower shipping volume and related under-absorption costs
reduced segment earnings to $11.3 million from $17.1 million in
2006. Machinery Technologies-Europe [machinery and related parts
and services for injection molding and blow molding supplied from
Europe] Fourth quarter new orders grew to $51 million from $40
million a year ago. Driven primarily by strong demand from Eastern
Europe, sales jumped to $60 million from $37 million. Favorable
currency translation effects accounted for roughly half of the new
order gains and one-quarter of the sales gains. In local
currencies, injection molding machine sales rose 18%, while
shipments of blow molding systems, aided by a large order, more
than doubled compared to the year-ago quarter. Volume gains,
restructuring benefits and disciplined pricing led to positive
segment earnings of $3.3 million compared to a loss of $0.6 million
in the fourth quarter of 2006. Aided in part by currency
translation, segment new orders for the year were $189 million, up
considerably from $154 million in 2006, while sales grew to $181
million, up from $153 million. Thanks to increased shipments and
cost-cutting measures, the segment had a major turnaround in 2007,
posting operating earnings of $3.3 million, compared to an
operating loss of $4.9 million a year ago. Mold Technologies [mold
bases and related parts and services, as well as maintenance,
repair and operating (MRO) supplies for injection molding
worldwide] Sales in the fourth quarter of $38 million were flat
with the year-ago quarter but down 6% in local currencies,
reflecting continued softness in injection molding related
businesses in North America. Restructuring, cost cutting and
increased global sourcing helped segment earnings grow to $2.8
million from $0.8 million in the year-ago quarter. Earnings were
also helped by the recovery of a receivable related to a prior
liability claim. Despite $5 million in currency translation gains,
sales in 2007 fell to $148 million, from $159 million in the prior
year. Segment earnings for the year were down, $1.9 million
compared to $3.0 million in 2006. Industrial Fluids [water-based
and oil-based coolants, lubricants and cleaners for metalcutting
and metalforming operations worldwide] Fourth quarter sales were
$31 million, flat with $29 million a year ago excluding currency
translation effects. Segment earnings improved to $6.6 million from
$4.1 million mainly due to the favorable resolution of product
liability claims. Industrial fluid sales in 2007 were $124 million,
compared to $117 million in 2006, mostly due to currency
translation. Segment earnings improved to $16.6 million from $10.8
million in 2006, reflecting improved pricing, greater operating
efficiency and lower product liability costs. Outlook �The economic
outlook for 2008 is mixed,� said Brown. �We expect to see continued
growth in most of our markets outside of North America,
particularly in China, India and other faster-growing economies.
Due to uncertainty in the automotive and housing sectors, however,
we are not anticipating any market growth in North America. �We
entered the year with a solid backlog for the first quarter. This
should enable us to show significant year-over-year improvement in
sales and operating results compared to the first quarter of 2007.
�We continue to work hard to make 2008 a significantly better year
for Milacron. In addition to improved operating results from
restructuring efforts, our cash flow will benefit from the U.S.
pension plan freeze we implemented at the end of last year, from
lower insurance costs going forward and from the ongoing sale of
redundant or non-core assets. We are also in the process of
negotiating an asset-based loan in Europe, which will increase our
overall liquidity,� Brown said. Annual Meeting Date Set Milacron�s
board of directors set May 8, 2008 as the date of the annual
meeting of shareholders to be held in Cincinnati, Ohio, and March
12, 2008 as the record date for determination of shareholders
entitled to notice of and to vote at the annual meeting. Conference
Call Today Milacron will hold an open investor conference call
today at 1 p.m. Eastern Time, which can be accessed live at
www.milacron.com. For analysts and investors wishing to ask
questions, the dial-in number will be 719-785-9451 or toll-free
888-287-5420. A recording of the conference call will be available
starting 4:00 p.m. on February 25 through midnight March 9 on the
company�s website or by phone:�719-457-0820 or toll-free
888-203-1112 and providing the access code:�1635249. Note:
Financial results in this release and accompanying tables are
preliminary, unaudited and subject to change until Milacron files
its Annual Report on Form 10-K with the Securities and Exchange
Commission, which it expects to do on or before March 31, 2008. 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.
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 the
toll-free investor line: 800-909-MILA (800-909-6452). Tables
Attached Milacron Inc. and Subsidiaries � � � � Fourth Quarter 2007
� � � � � � � � � � � Three Months Ended Twelve Months Ended
December 31, December 31, � � � � 2007 � 2006 � 2007 � 2006 � Sales
$ 216,582,000 $ 197,457,000 $ 807,868,000 $ 820,101,000 � Loss from
continuing operations (74,429,000 ) (8,693,000 ) (89,943,000 )
(39,785,000 ) Per Share Basic (14.86 ) (2.27 ) (19.82 ) (10.17 )
Diluted (14.86 ) (2.27 ) (19.82 ) (10.17 ) � Earnings from
discontinued operations 1,037,000 64,000 1,172,000 81,000 Per Share
Basic 0.20 0.02 0.23 0.02 Diluted 0.20 0.02 0.23 0.02 � Net loss
(73,392,000 ) (8,629,000 ) (88,771,000 ) (39,704,000 ) Per Share
Basic (14.66 ) (2.25 ) (19.59 ) (10.15 ) Diluted (14.66 ) (2.25 )
(19.59 ) (10.15 ) � � Common shares Weighted average outstanding
for basic EPS 5,167,000 4,869,000 5,008,000 4,833,000 Weighted
average outstanding for diluted EPS 5,167,000 4,869,000 5,008,000
4,833,000 Outstanding at quarter end 5,486,000 5,232,000 5,486,000
5,232,000 � � � � � � � � � � � � 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 the effect of a beneficial conversion feature. Consolidated
Earnings Milacron Inc. and Subsidiaries � � � � Fourth Quarter 2007
� � � � � � � � � � (In millions, except per-share data) Three
Months Ended Twelve Months Ended December 31, December 31, � � �
2007 � 2006 � 2007 � 2006 � Sales $ 216.6 $ 197.5 $ 807.9 $ 820.1
Cost of products sold 168.0 159.2 644.9 668.2 Cost of products sold
related to restructuring 0.2 � - � 0.2 � 0.5 � Total cost of
products sold 168.2 � 159.2 � 645.1 � 668.7 � Manufacturing margins
48.4 38.3 162.8 151.4 Percent of sales 22.3 % 19.4 % 20.2 % 18.5 %
� Other costs and expenses Selling and administrative 39.0 32.4
144.3 140.2 Restructuring costs 7.2 5.1 12.3 16.9 Change in
preferred stock ownership costs 1.4 - 1.9 - Pension plan
curtailment cost 1.9 - 1.9 - Refinancing costs - 1.8 - 1.8 Other
income - net (0.6 ) 0.1 � (0.7 ) (0.3 ) Total other costs and
expenses 48.9 � 39.4 � 159.7 � 158.6 � � Operating earnings (loss)
(0.5 ) (1.1 ) 3.1 (7.2 ) Interest expense - net (7.8 ) (7.7 ) (31.4
) (30.0 ) � Loss from continuing operations before income taxes
(8.3 ) (8.8 ) (28.3 ) (37.2 ) Provision (benefit) for income taxes
(a) 66.1 � (0.1 ) 61.7 � 2.6 � Loss from continuing operations
(74.4 ) (8.7 ) (90.0 ) (39.8 ) Discontinued operations - net of
income taxes (b) 1.0 � 0.1 � 1.2 � 0.1 � Net loss $ (73.4 ) $ (8.6
) $ (88.8 ) $ (39.7 ) � Loss per common share - basic and diluted
Continuing operations $ (14.86 ) $ (2.27 ) $ (19.82 ) $ (10.17 )
Discontinued operations 0.20 � 0.02 � 0.23 � 0.02 � Net loss $
(14.66 ) $ (2.25 ) $ (19.59 ) $ (10.15 ) � � (a) In 2007, includes
a $63 million non-cash charge associated with the change in
ownership of a majority of the company's Series B Preferred Stock,
as announced in October, 2007. (b) 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 � �
Fourth Quarter 2007 � � � � � � � (In millions) December 31,
December 31, � � � � 2007 � 2006 � Assets Cash and cash equivalents
$ 40.8 $ 38.5 Notes and accounts receivable-net 115.1 114.5
Inventories 179.7 170.7 Other current assets 24.4 � 41.9 � Total
current assets 360.0 365.6 Property, plant and equipment - net
106.4 114.3 Goodwill 90.5 87.3 Other noncurrent assets 36.0 � 83.3
� Total assets $ 592.9 � $ 650.5 � � Liabilities and shareholders'
deficit Short-term borrowings and long-term debt due within one
year (a) $ 29.0 $ 27.7 Trade accounts payable and advance billings
and deposits 121.5 102.2 Accrued and other current liabilities 68.2
� 82.6 � Total current liabilities 218.7 212.5 Long-term accrued
liabilities 193.4 226.5 Long-term debt 231.9 232.8 Shareholders'
deficit (51.1 ) (21.3 ) Total liabilities and shareholders' deficit
$ 592.9 � $ 650.5 � � � (a) In 2007, $24.0 million was drawn
against the revolving credit facility and in 2006, $23 million was
drawn against the revolving credit facility. Outstanding letters of
credit were $8.0 million in 2007 and 2006. Note: These statements
are unaudited and subject to year-end adjustments. Consolidated
Cash Flows Milacron Inc. and Subsidiaries � � � � Fourth Quarter
2007 � � � � � � � � � � � (In millions) Three Months Ended Twelve
Months Ended December 31, December 31, � � � � 2007 � 2006 � 2007 �
2006 � Increase (decrease) in cash and cash equivalents Operating
activities cash flows Net loss $ (73.4 ) $ (8.6 ) $ (88.8 ) $ (39.7
) Discontinued operations - net of income taxes (1.0 ) (0.1 ) (1.2
) (0.1 ) Depreciation and amortization 4.1 4.3 16.1 16.8
Restructuring costs 8.9 3.3 10.2 8.2 Working capital changes Notes
and accounts receivable 7.7 5.5 3.3 7.9 Inventories 5.8 10.0 (4.4 )
(4.5 ) Other current assets 0.9 (0.9 ) (3.7 ) 2.1 Trade accounts
payable 2.7 (0.5 ) 11.7 (1.7 ) Other current liabilities (13.8 )
(10.6 ) (10.9 ) (2.0 ) Deferred income taxes and other - net 67.7 �
(3.2 ) 77.3 � (6.2 ) Net cash provided (used) by operating
activities 9.6 (0.8 ) 9.6 (19.2 ) � Investing activities cash flows
Capital expenditures (3.6 ) (3.5 ) (9.6 ) (13.8 ) Net disposals of
property, plant and equipment 0.1 � 0.8 � 0.3 � 2.9 � Net cash used
by investing activities (3.5 ) (2.7 ) (9.3 ) (10.9 ) � Financing
activities cash flows Repayments of long-term debt (1.0 ) (0.2 )
(1.6 ) (1.6 ) Increase (decrease) in short-term borrowings (2.3 )
5.7 1.0 21.2 Dividends paid - � (0.1 ) (0.2 ) (0.2 ) Net cash
provided (used) by financing activities (3.3 ) 5.4 (0.8 ) 19.4 �
Effect of exchange rate fluctuations on cash and cash equivalents
0.5 � 0.9 � 2.8 � 3.5 � Increase (decrease) in cash and cash
equivalents 3.3 2.8 2.3 (7.2 ) � Cash and cash equivalents at
beginning of period 37.5 35.7 38.5 45.7 � � � � Cash and cash
equivalents at end of period $ 40.8 � $ 38.5 � $ 40.8 � $ 38.5 � �
� � � � � � � � � � � Note: These statements are unaudited and
subject to year-end adjustments. Segment and Supplemental
Information Milacron Inc. and Subsidiaries � � � � Fourth Quarter
2007 � � � � � � � � � � (In millions) Three Months Ended Twelve
Months Ended December 31, December 31, � � � 2007 � 2006 � 2007 �
2006 � Machinery technologies North America Sales $ 91.5 $ 95.7 $
367.0 $ 402.4 Operating cash flow (a) 2.1 6.8 17.1 23.2 Segment
earnings 0.8 5.2 11.3 17.1 Percent of sales 0.9 % 5.4 % 3.1 % 4.2 %
New orders 98.8 98.8 378.2 411.0 � Machinery technologies Europe
Sales $ 60.4 $ 37.4 $ 180.5 $ 153.4 Operating cash flow (a) 4.5 0.4
7.3 (1.1 ) Segment earnings (loss) 3.3 (0.6 ) 3.3 (4.9 ) Percent of
sales 5.5 % -1.6 % 1.8 % -3.2 % New orders 50.5 40.3 188.5 154.1 �
Mold technologies Sales $ 37.6 $ 37.8 $ 148.2 $ 158.8 Operating
cash flow (a) 3.9 2.0 6.4 8.2 Segment earnings (loss) 2.8 0.8 1.9
3.0 Percent of sales 7.4 % 2.1 % 1.3 % 1.9 % New orders 37.2 37.9
147.8 157.8 � Eliminations Sales $ (4.2 ) $ (2.8 ) $ (11.8 ) $
(12.0 ) New orders (4.6 ) (3.4 ) (12.9 ) (11.6 ) � Total plastics
technologies Sales $ 185.3 $ 168.1 $ 683.9 $ 702.6 Operating cash
flow (a) 10.5 9.2 30.8 30.3 Segment earnings 6.9 5.4 16.5 15.2
Percent of sales 3.7 % 3.2 % 2.4 % 2.2 % New orders 181.9 173.6
701.6 711.3 � Industrial fluids Sales $ 31.3 $ 29.4 $ 124.0 $ 117.5
Operating cash flow (a) 7.0 4.5 18.2 12.3 Segment earnings 6.6 4.1
16.6 10.8 Percent of sales 21.1 % 13.9 % 13.4 % 9.2 % New orders
31.3 29.4 124.0 117.5 � Total continuing operations Sales $ 216.6 $
197.5 $ 807.9 $ 820.1 Operating cash flow (a) 14.3 10.1 35.5 28.8
Segment earnings 13.5 9.5 33.1 26.0 Restructuring costs (7.4 ) (5.1
) (12.5 ) (17.4 ) Change in preferred stock ownership costs (1.4 )
- (1.9 ) - Pension plan curtailment cost (1.9 ) - (1.9 ) -
Corporate expenses (3.2 ) (3.6 ) (13.3 ) (13.6 ) Other unallocated
expenses (0.1 ) (1.9 ) (0.4 ) (2.2 ) Operating earnings (loss) (0.5
) (1.1 ) 3.1 (7.2 ) Percent of sales -0.2 % -0.6 % 0.4 % -0.9 % New
orders 213.2 203.0 825.6 828.8 Ending backlog 129.1 105.7 129.1
105.7 � (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 � � � � Fourth Quarter 2007 � � � �
� � � � � (In millions) Three Months Ended Twelve Months Ended
December 31, December 31, � � 2007 � 2006 � 2007 � 2006 � Machinery
technologies North America Segment earnings $ 0.8 $ 5.2 $ 11.3 $
17.1 Depreciation and amortization 1.3 � 1.6 � 5.8 � 6.1 �
Operating cash flow 2.1 6.8 17.1 23.2 � Machinery technologies
Europe Segment earnings (loss) $ 3.3 $ (0.6 ) $ 3.3 $ (4.9 )
Depreciation and amortization 1.2 � 1.0 � 4.0 � 3.8 � Operating
cash flow 4.5 0.4 7.3 (1.1 ) � Mold technologies Segment earnings
(loss) $ 2.8 $ 0.8 $ 1.9 $ 3.0 Depreciation and amortization 1.1 �
1.2 � 4.5 � 5.2 � Operating cash flow 3.9 2.0 6.4 8.2 � Total
plastics technologies Segment earnings $ 6.9 $ 5.4 $ 16.5 $ 15.2
Depreciation and amortization 3.6 � 3.8 � 14.3 � 15.1 � Operating
cash flow 10.5 9.2 30.8 30.3 � Industrial fluids Segment earnings $
6.6 $ 4.1 $ 16.6 $ 10.8 Depreciation and amortization 0.4 � 0.4 �
1.6 � 1.5 � Operating cash flow 7.0 4.5 18.2 12.3 � Total
continuing operations Net loss $ (73.4 ) $ (8.6 ) $ (88.8 ) $ (39.7
) Discontinued operations - net of income taxes (a) (1.0 ) (0.1 )
(1.2 ) (0.1 ) Provision (benefit) for income taxes (b) 66.1 (0.1 )
61.7 2.6 Interest expense - net 7.8 7.7 31.4 30.0 Restructuring
costs 7.4 5.1 12.5 17.4 Change in preferred stock ownership costs
1.4 - 1.9 - Pension plan curtailment cost 1.9 - 1.9 - Refinancing
costs - 1.8 - 1.8 Depreciation and amortization 4.1 � 4.3 � 16.1 �
16.8 � Operating cash flow $ 14.3 � $ 10.1 � $ 35.5 � $ 28.8 � � �
(a) Represents adjustments of reserves related to prior
divestitures. (b) In 2007, includes a $63 million non-cash charge
associated with the change in ownership of a majority of the
company's Series B Preferred Stock, as announced in October, 2007.
Note: These statements are unaudited and subject to year-end
adjustments. Historical Information � � � � � (In millions, except
per-share data) � 2005 2006 2007 � � � � � Qtr 1 Qtr 2 Qtr 3 Qtr 4
Year � Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year � Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
� Sales $ 192.3 $ 208.8 $ 190.7 $ 217.1 $ 808.9 $ 202.4 $ 211.1 $
209.1 $ 197.5 $ 820.1 $ 190.3 $ 197.3 $ 203.7 $ 216.6 $ 807.9 Cost
of products sold 160.1 171.0 157.3 174.7 663.1 168.8 170.4 169.8
159.2 668.2 154.8 158.6 163.5 168.0 644.9 Cost of products sold
related to restructuring - � - � - � - � - � - � 0.4 � 0.1 � - �
0.5 � - � - � - � 0.2 � 0.2 � Total cost of products sold 160.1 �
171.0 � 157.3 � 174.7 � 663.1 � 168.8 � 170.8 � 169.9 � 159.2 �
668.7 � 154.8 � 158.6 � 163.5 � 168.2 � 645.1 � � Manufacturing
margins 32.2 37.8 33.4 42.4 145.8 33.6 40.3 39.2 38.3 151.4 35.5
38.7 40.2 48.4 162.8 � Other costs and expenses Selling and
administrative 33.5 33.7 31.3 35.3 133.8 34.2 38.3 35.3 32.4 140.2
35.3 34.9 35.1 39.0 144.3 Refinancing costs (a) - - - - - - - - 1.8
1.8 - - - - - Restructuring costs (b) 0.4 0.3 0.1 0.8 1.6 0.6 8.4
2.8 5.1 16.9 2.4 1.5 1.2 7.2 12.3 Change in preferred stock
ownership costs - - - - - - - - - - - - 0.5 1.4 1.9 Pension plan
curtailment cost - - - - - - - - - - - - - 1.9 1.9 Other - net (1.0
) 0.2 � 1.3 � (0.1 ) 0.4 � (0.1 ) (0.9 ) 0.6 � 0.1 � (0.3 ) (0.2 )
(0.3 ) 0.4 � (0.6 ) (0.7 ) Total other costs and expenses 32.9 �
34.2 � 32.7 � 36.0 � 135.8 � 34.7 � 45.8 � 38.7 � 39.4 � 158.6 �
37.5 � 36.1 � 37.2 � 48.9 � 159.7 � � Operating earnings (loss)
(0.7 ) 3.6 0.7 6.4 10.0 (1.1 ) (5.5 ) 0.5 (1.1 ) (7.2 ) (2.0 ) 2.6
3.0 (0.5 ) 3.1 � Interest expense - net (8.2 ) (7.0 ) (7.7 ) (7.4 )
(30.3 ) (7.6 ) (7.9 ) (6.8 ) (7.7 ) (30.0 ) (7.7 ) (7.9 ) (8.0 )
(7.8 ) (31.4 ) � Loss from continuing operations before income
taxes (8.9 ) (3.4 ) (7.0 ) (1.0 ) (20.3 ) (8.7 ) (13.4 ) (6.3 )
(8.8 ) (37.2 ) (9.7 ) (5.3 ) (5.0 ) (8.3 ) (28.3 ) � Provision
(benefit) from income taxes (c) 0.2 � 1.0 � 0.6 � (5.6 ) (3.8 ) 0.9
� 0.9 � 0.9 � (0.1 ) 2.6 � 1.0 � (4.9 ) (0.5 ) 66.1 � 61.7 � �
Earnings (loss) from continuing operations (9.1 ) (4.4 ) (7.6 ) 4.6
(16.5 ) (9.6 ) (14.3 ) (7.2 ) (8.7 ) (39.8 ) (10.7 ) (0.4 ) (4.5 )
(74.4 ) (90.0 ) � Discontinued operations - net of income taxes (d)
Net gain (loss) on divestitures - � 0.6 � 0.7 � 1.2 � 2.5 � - � - �
- � 0.1 � 0.1 � (0.1 ) 0.3 � - � 1.0 � 1.2 � Total discontinued
operations - 0.6 0.7 1.2 2.5 - - - 0.1 0.1 (0.1 ) 0.3 - 1.0 1.2 � �
� � � � � � � � � � � � � Net earnings (loss) $ (9.1 ) $ (3.8 ) $
(6.9 ) $ 5.8 � $ (14.0 ) $ (9.6 ) $ (14.3 ) $ (7.2 ) $ (8.6 ) $
(39.7 ) $ (10.8 ) $ (0.1 ) $ (4.5 ) $ (73.4 ) $ (88.8 ) � Earnings
(loss) per common share Basic Continuing operations $ (2.24 ) $
(1.24 ) $ (1.92 ) $ 0.62 $ (4.77 ) $ (2.49 ) $ (3.45 ) $ (1.97 ) $
(2.27 ) $ (10.17 ) $ (2.66 ) $ (0.55 ) $ (1.36 ) $ (14.86 ) $
(19.82 ) Discontinued operations - � 0.12 � 0.15 � 0.26 � 0.53 � -
� - � - � 0.02 � 0.02 � (0.02 ) 0.05 � - � 0.20 � 0.23 � Net
earnings (loss) $ (2.24 ) $ (1.12 ) $ (1.77 ) $ 0.88 � $ (4.24 ) $
(2.49 ) $ (3.45 ) $ (1.97 ) $ (2.25 ) $ (10.15 ) $ (2.68 ) $ (0.50
) $ (1.36 ) $ (14.66 ) $ (19.59 ) Diluted Continuing operations $
(2.24 ) $ (1.24 ) $ (1.92 ) $ 0.42 $ (4.77 ) $ (2.49 ) $ (3.45 ) $
(1.97 ) $ (2.27 ) $ (10.17 ) $ (2.66 ) $ (0.55 ) $ (1.36 ) $ (14.86
) $ (19.82 ) Discontinued operations - � 0.12 � 0.15 � 0.12 � 0.53
� - � - � - � 0.02 � 0.02 � (0.02 ) 0.05 � - � 0.20 � 0.23 � Net
earnings (loss) $ (2.24 ) $ (1.12 ) $ (1.77 ) $ 0.54 � $ (4.24 ) $
(2.49 ) $ (3.45 ) $ (1.97 ) $ (2.25 ) $ (10.15 ) $ (2.68 ) $ (0.50
) $ (1.36 ) $ (14.66 ) $ (19.59 ) � (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) In 2007, includes a $63 million
non-cash charge associated with the change in ownership of a
majority of the company's Series B Preferred Stock, as announced in
October, 2007. (d) 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 2006 2007 � � � � � � Qtr
1 � Qtr 2 � Qtr 3 � Qtr 4 � � Year � Qtr 1 � Qtr 2 � Qtr 3 � Qtr 4
� Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year � Machinery technologies North
America Sales $ 87.1 $ 95.4 $ 86.7 $ 107.3 $ 376.5 $ 94.1 $ 106.9 $
105.7 $ 95.7 $ 402.4 $ 91.1 $ 91.5 $ 92.9 $ 91.5 $ 367.0 Operating
cash flow (a) 3.5 6.5 5.8 7.8 23.6 2.9 6.0 7.5 6.8 23.2 3.4 6.5 5.1
2.1 17.1 Segment earnings 1.9 4.9 4.3 6.2 17.3 1.4 4.5 6.0 5.2 17.1
1.8 4.9 3.8 0.8 11.3 New orders 94.9 100.7 89.2 97.9 382.7 114.0
92.5 105.7 98.8 411.0 97.9 90.1 91.4 98.8 378.2 � Machinery
technologies Europe Sales $ 34.3 $ 41.5 $ 36.8 $ 36.9 $ 149.5 $
36.3 $ 39.9 $ 39.8 $ 37.4 $ 153.4 $ 34.4 $ 40.2 $ 45.5 $ 60.4 $
180.5 Operating cash flow (a) (1.2 ) 0.6 (0.5 ) 0.4 (0.7 ) (1.6 )
(0.2 ) 0.3 0.4 (1.1 ) (0.2 ) 1.2 1.8 4.5 7.3 Segment earnings
(loss) (2.2 ) (0.5 ) (1.5 ) (0.8 ) (5.0 ) (2.4 ) (1.2 ) (0.7 ) (0.6
) (4.9 ) (1.2 ) 0.3 0.9 3.3 3.3 New orders 35.4 42.7 34.2 40.3
152.6 40.0 42.9 30.9 40.3 154.1 46.6 45.1 46.3 50.5 188.5 � Mold
technologies Sales $ 44.2 $ 44.4 $ 40.6 $ 44.2 $ 173.4 $ 44.4 $
38.9 $ 37.7 $ 37.8 $ 158.8 $ 37.9 $ 35.8 $ 36.9 $ 37.6 $ 148.2
Operating cash flow (a) 3.7 2.1 0.7 3.4 9.9 3.3 1.6 1.3 2.0 8.2 1.4
0.3 0.8 3.9 6.4 Segment earnings (loss) 2.3 0.7 (0.7 ) 1.6 3.9 1.9
0.3 - 0.8 3.0 0.3 (0.8 ) (0.4 ) 2.8 1.9 New orders 45.1 43.4 40.7
44.5 173.7 43.7 38.5 37.7 37.9 157.8 36.7 36.5 37.4 37.2 147.8 �
Eliminations Sales $ (0.3 ) $ (0.6 ) $ (0.5 ) $ (1.3 ) $ (2.7 ) $
(2.1 ) $ (3.9 ) $ (3.2 ) $ (2.8 ) $ (12.0 ) $ (2.8 ) $ (2.4 ) $
(2.4 ) $ (4.2 ) $ (11.8 ) New orders (0.4 ) (0.5 ) (0.4 ) (1.0 )
(2.3 ) (2.3 ) (3.2 ) (2.7 ) (3.4 ) (11.6 ) (2.8 ) (2.1 ) (3.4 )
(4.6 ) (12.9 ) � Total plastics technologies Sales $ 165.3 $ 180.7
$ 163.6 $ 187.1 $ 696.7 $ 172.7 $ 181.8 $ 180.0 $ 168.1 $ 702.6 $
160.6 $ 165.1 $ 172.9 $ 185.3 $ 683.9 Operating cash flow (a) 6.0
9.2 6.0 11.6 32.8 4.6 7.4 9.1 9.2 30.3 4.6 8.0 7.7 10.5 30.8
Segment earnings 2.0 5.1 2.1 7.0 16.2 0.9 3.6 5.3 5.4 15.2 0.9 4.4
4.3 6.9 16.5 New orders 175.0 186.3 163.7 181.7 706.7 195.4 170.7
171.6 173.6 711.3 178.4 169.6 171.7 181.9 701.6 � Industrial fluids
Sales $ 27.0 $ 28.1 $ 27.1 $ 30.0 $ 112.2 $ 29.7 $ 29.3 $ 29.1 $
29.4 $ 117.5 $ 29.7 $ 32.2 $ 30.8 $ 31.3 $ 124.0 Operating cash
flow (a) 1.9 2.4 2.2 3.9 10.4 2.3 3.3 2.2 4.5 12.3 3.6 3.6 4.0 7.0
18.2 Segment earnings 1.4 1.9 1.8 3.6 8.7 1.9 2.9 1.9 4.1 10.8 3.3
3.2 3.5 6.6 16.6 New orders 27.0 28.2 27.1 29.8 112.1 29.7 29.3
29.1 29.4 117.5 29.7 32.2 30.8 31.3 124.0 � Total continuing
operations Sales $ 192.3 $ 208.8 $ 190.7 $ 217.1 $ 808.9 $ 202.4 $
211.1 $ 209.1 $ 197.5 $ 820.1 $ 190.3 $ 197.3 $ 203.7 $ 216.6 $
807.9 Operating cash flow (a) 4.2 8.5 5.2 12.1 30.0 3.6 7.5 7.6
10.1 28.8 4.4 8.2 8.6 14.3 35.5 Segment earnings 3.4 7.0 3.9 10.6
24.9 2.8 6.5 7.2 9.5 26.0 4.2 7.6 7.8 13.5 33.1 Restructuring costs
(b) (0.4 ) (0.3 ) (0.1 ) (0.8 ) (1.6 ) (0.6 ) (8.8 ) (2.9 ) (5.1 )
(17.4 ) (2.4 ) (1.5 ) (1.2 ) (7.4 ) (12.5 ) Change in preferred
stock ownership costs - - - - - - - - - - - - (0.5 ) (1.4 ) (1.9 )
Pension plan curtailment cost - - - - - - - - - - - - - (1.9 ) (1.9
) Corporate expenses (3.5 ) (3.0 ) (3.0 ) (3.3 ) (12.8 ) (3.3 )
(3.1 ) (3.6 ) (3.6 ) (13.6 ) (3.7 ) (3.4 ) (3.0 ) (3.2 ) (13.3 )
Other unallocated expenses (c) (0.2 ) (0.1 ) (0.1 ) (0.1 ) (0.5 ) -
� (0.1 ) (0.2 ) (1.9 ) (2.2 ) (0.1 ) (0.1 ) (0.1 ) (0.1 ) (0.4 )
Operating earnings (loss) (0.7 ) 3.6 0.7 6.4 10.0 (1.1 ) (5.5 ) 0.5
(1.1 ) (7.2 ) (2.0 ) 2.6 3.0 (0.5 ) 3.1 Percent of sales -0.4 % 1.7
% 0.4 % 2.9 % 1.2 % -0.5 % -2.6 % 0.2 % -0.6 % -0.9 % -1.1 % 1.3 %
1.5 % -0.2 % 0.4 % New orders 202.0 214.5 190.8 211.5 818.8 225.1
200.0 200.7 203.0 828.8 208.1 201.8 202.5 213.2 825.6 Ending
backlog 96.0 99.2 99.6 92.7 92.7 116.2 106.8 98.5 105.7 105.7 126.6
132.1 131.2 129.1 129.1 � (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.
Updated: February 25, 2007 � � � 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) � � � March
31, 2008 � Projected profit & loss items Sales (1) � $200 - 212
Total plastics technologies 170 - 180 Industrial fluids 30 - 32
Segment earnings Total plastics technologies 2 - 4 Industrial
fluids 2.5 - 3.5 Corporate expenses 4.5 - 3.5 Interest expense -
net 8.5 - 7.5 Provision for (benefit from) income taxes 0 - 1
Restructuring costs 1 - 2 Net earnings (loss) after tax (2) (11.5)
- (4.5) Average shares outstanding - basic 5 Average shares
outstanding - diluted 11 � Earnings per share (3) ($2.70) - ($1.30)
� Projected cash flow & balance sheet items Depreciation and
amortization 3 - 4 Primary working capital - increase (4) 4 - 8
Cash pension contribution 0 Capital expenditures, net 3 - 4 Cash
interest less than 1 Cash dividends less than 1 Cash tax less than
1 Cash refinancing fees 1 - 2 Cash restructuring 1 - 2 � � �����1
Quarter ended March 31, 2008 increased approximately $8 million
over the same period a year ago due to the strengthening of the
Euro. � � �����2 Includes $0.6 million of non-cash expense related
to the U.S. defined benefit plan in quarter ended March 31, 2008. �
�����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 December 31, 2007 foreign
exchange rates (e.g., USD/EUR = 1.4384), and no further
acquisitions or divestitures.
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