Milacron's Orders Up 11% in First Quarter.CINCINNATI Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. -- Milacron Inc. (NYSE NYSE See: New York Stock Exchange :MZ), a leading global supplier of plastics-processing technologies and industrial fluids, reported a net loss of $9.6 million, or $0.25 per share, in the first quarter ended March 31, 2006. This compared to a net loss of $9.1 million, or $0.22 per share, in the first quarter of 2005, as the benefits of higher sales were offset by increased material prices and other costs. First-quarter manufacturing margins of 16.6% were essentially even with a year ago. Sales for the first quarter were $202 million, up 5% over the first quarter last year, while new orders rose 11% to $225 million, the highest level since the fourth quarter of 2000. During the quarter Milacron continued to improve its working capital management, cutting primary working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. to 22.3% of sales from 25.5% in the first quarter of 2005 (see table). This helped the company generate a positive $4.3 million in net cash provided by operations compared to a use of cash of $6.2 million in the year-ago quarter. Cash on hand at the end of the quarter was $45 million, and the company had approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $41 million available for borrowing under its asset-based revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, which was undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely at the end of the quarter. As a result, liquidity (cash plus borrowing availability) grew to $86 million. "While the first quarter is typically our weakest of the year, we are encouraged by the strong level of new orders, many of which reflect improved pricing," said Ronald D. Brown, chairman, president and chief executive officer. "This is the result of the execution of our growth initiatives as well as continued market recovery. The investment we have been making in new products, our expansion into faster-growing markets, our focus on improving customer support and growing our aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. businesses are all beginning to pay off," he said. Segment Results Machinery Technologies-North America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. (machinery and related parts and services for injection molding injection molding n. A manufacturing process for forming objects, as of plastic or metal, by heating the molding material to a fluid state and injecting it into a mold. , blow molding molding, in architecture, furniture, and decorative objects, a surface or group of surfaces of projecting or receding contours. A molding may serve as a defining element, terminating a unit or an entire composition (e.g. and extrusion supplied from North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. and China) Growing demand for injection, blow molding and extrusion equipment boosted sales to $94 million, up 8% over the same period last year. New orders rose 20% to $114 million, resulting in a buildup build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. in backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of products with improved pricing. Segment earnings, however, declined slightly to $1.4 million versus $1.9 million in the year-ago quarter, as modestly better pricing was offset by higher costs for materials and the pursuit of certain strategic initiatives including expanded global distribution and new product development. Machinery Technologies-Europe (machinery and related parts and services for injection molding and blow molding supplied from Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). )
Demand in Western Europe Western EuropeThe countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). showed signs of improvement for both injection molding and blow molding machinery, as first-quarter new orders in this segment rose 14% to $40 million from $35 million in the first quarter of 2005 and sales of $36 million were up 6% despite unfavorable currency translation effects. In local currencies, orders and sales rose 23% and 15%, respectively. Continued pricing pressure prevented this segment from recuperating material cost increases, resulting in an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.4 million compared to a loss of $2.2 million a year ago. Mold Technologies (mold bases and related parts and services, as well as maintenance, repair and operating supplies for injection molding worldwide) Sales in the first quarter of $44 million, essentially even with those of a year ago, were sluggish and lower than anticipated. Continued pricing pressures in Western European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets held back operating performance and segment earnings declined to $1.9 million from $2.3 million in the first quarter of 2005. Industrial Fluids (water-based and oil-based coolants, lubricants lubricants preparations for the lubrication of passages to reduce frictional injury, e.g. oily preparations, including petroleum jelly, lanolin or water-soluble preparations such as methyl cellulose. and cleaners for metalcutting and metalforming operations worldwide) Improved pricing in both North America and Western Europe helped boost sales to $30 million, up 11% over the first quarter of 2005, and also contributed to segment earnings of $1.9 million versus $1.4 million a year ago. The improvement in earnings was significant considering that the first quarter of 2005 included almost $1 million in income from a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement. Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Progress Milacron's consolidation of its global mold technologies and European machinery technologies businesses, announced in November November: see month. 2005, are on schedule. After extensive discussions with the union and works council Noun 1. works council - (chiefly Brit) a council representing employer and employees of a plant or business to discuss working conditions etc; also: a committee representing the workers elected to negotiate with management about grievances and wages etc regarding the company's injection molding machine Injection molding machine (also known as injection press) - a machine for making plastic parts. Manufacturing products by injection molding process. Consist of two main parts, an injection unit and a clamping unit. manufacturing operation in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , the parties agreed to a plan to restructure the business based on a rationalized global product portfolio. These actions will streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. the organization and reduce the overall cost structure, while allowing the company to work more closely with customers. The works council is working with management to ensure the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. success of this operation by making several concessions, including a reduction of up to 90 employees. At the same time, Milacron's mold technologies segment is proceeding with its consolidation efforts in both North America and Europe to remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. its business to bring lower-cost, high-quality products to its customers. As previously noted, in total the restructuring actions are expected to require a cash cost of approximately $13 million, spread over 2006 and the first half of 2007, and to generate annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. cost savings of about $15 million, of which $3 million to $4 million will be realized in late 2006. Outlook "We look forward to showcasing a great number of the new products we have been developing at the upcoming National Plastics Exposition exposition or exhibition, term frequently applied to an organized public fair or display of industrial and artistic productions, designed usually to promote trade and to reflect cultural progress. and International Manufacturing Technologies Show in June June: see month. and September September: see month. , respectively," Brown said. "Our plastics machinery businesses, on a global basis, have been growing backlog with better priced products, so we expect to see operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before in these segments improve in the second quarter. The consolidation activities in our European machinery and mold technologies segments will result in a charge of approximately $9 million to $12 million in the second quarter but will benefit these businesses later in the year and more so in 2007 and beyond. Our industrial fluids business is developing new products and expanding its distribution, which we believe will help increase sales and operating earnings throughout the year. Overall, with 4% to 5% top-line growth reasonably achievable, we see 2006 shaping up as a better year for Milacron than 2005," he said. The forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. on file with the Securities and Exchange Commission. Investor Conference Call Today at 1 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York 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 913-981-4900 or 800-810-0924. A recording of the conference call will be available from 4:00 p.m. today through midnight May 8 on Milacron's website or by phone: 719-457-0820 or 888-203-1112 and providing the access code: 3075284. First incorporated in 1884, Milacron is a leading global supplier of plastics-processing technologies and industrial fluids, with 3,500 employees and 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).
Milacron Inc. and Subsidiaries
First Quarter 2006
---------------------------------------------------------------------
Three Months Ended
March 31,
----------------------------
2006 2005
--------------------------------------- ------------ -------------
Sales $202,397,000 $ 192,316,000
Net loss (9,609,000) (9,093,000)
Per Share
Basic (0.25) (0.22)
Diluted (0.25) (0.22)
Common shares
Weighted average outstanding for
basic EPS 48,024,000 47,524,000
Weighted average outstanding for
diluted EPS 48,024,000 47,524,000
Outstanding at quarter end 51,276,000 49,702,000
Note: These statements are unaudited and subject to year-end
adjustments.
Consolidated Earnings
Milacron Inc. and Subsidiaries
First Quarter 2006
---------------------------------------------------------------------
(In millions, except per-share data) Three Months Ended
March 31,
----------------------------
2006 2005
--------------------------------------- ------------ -------------
Sales $ 202.4 $ 192.3
Cost of products sold 168.8 160.1
------------ -------------
Manufacturing margins 33.6 32.2
Percent of sales 16.6% 16.7%
Other costs and expenses
Selling and administrative 34.2 33.5
Restructuring costs(a) 0.6 0.4
Other expense - net (0.1) (1.0)
------------ -------------
Total other costs and expenses 34.7 32.9
------------ -------------
Operating loss (1.1) (0.7)
Interest expense - net (7.6) (8.2)
------------ -------------
Loss before income taxes (8.7) (8.9)
Provision for income taxes 0.9 0.2
------------ -------------
Net loss $ (9.6) $ (9.1)
============ =============
Net loss per common share - basic and
diluted $ (0.25) $ (0.22)
============ =============
(a) Represents costs related to initiatives to reduce operating and
administrative costs.
Note: These statements are unaudited and subject to year-end
adjustments.
Consolidated Balance Sheets
Milacron Inc. and Subsidiaries
First Quarter 2006
---------------------------------------------------------------------
(In millions) March 31, March 31,
2006 2005
--------------------------------------- ------------ -------------
Assets
Cash and cash equivalents $ 44.6 $ 43.7
Notes and accounts receivable - net 119.8 128.1
Inventories 169.0 161.3
Other current assets 44.7 46.5
------------ -------------
Total current assets 378.1 379.6
Property, plant and equipment - net 115.2 124.0
Goodwill 84.3 85.8
Other noncurrent assets 106.4 116.0
------------ -------------
Total assets $ 684.0 $ 705.4
============ =============
Liabilities and shareholders' equity
(deficit)
Short-term borrowings and long-term
debt due within one year(a) $ 4.8 $ 3.7
Trade accounts payable and advance
billings and deposits 110.8 88.9
Accrued and other current liabilities 81.8 99.2
------------ -------------
Total current liabilities 197.4 191.8
Long-term accrued liabilities 265.1 243.4
Long-term debt 232.9 235.3
Shareholders' equity (deficit) (11.4) 34.9
------------ -------------
Total liabilities and
shareholders' equity (deficit) $ 684.0 $ 705.4
============ =============
(a) No borrowings were drawn against the revolving credit facility in
either 2006 or 2005. Outstanding letters of credit were $8 million
and $10 million in 2006 and 2005, respectively.
Note: These statements are unaudited and subject to year-end
adjustments.
Consolidated Cash Flows
Milacron Inc. and Subsidiaries
First Quarter 2006
---------------------------------------------------------------------
(In millions) Three Months Ended
March 31,
----------------------------
2006 2005
--------------------------------------- ------------ -------------
Increase (decrease) in cash and cash
equivalents
Operating activities cash flows
Net loss $ (9.6) $ (9.1)
Depreciation and amortization 4.1 4.5
Restructuring costs 0.6 0.4
Working capital changes
Notes and accounts receivable (1.2) 5.2
Inventories (6.7) (9.0)
Other current assets (0.1) 2.6
Trade accounts payable 8.5 (4.6)
Other current liabilities 5.5 (0.9)
Deferred income taxes and other - net 3.2 4.7
------------ -------------
Net cash provided (used) by
operating activities 4.3 (6.2)
Investing activities cash flows
Capital expenditures (3.7) (1.5)
Other - net - 0.2
------------ -------------
Net cash used by investing
activities (3.7) (1.3)
Financing activities cash flows
Repayments of long-term debt (0.6) (3.8)
Decrease in short-term borrowings (1.8) (10.2)
Debt issuance costs - (0.6)
Costs of 2004 rights offering - (1.1)
Dividends paid - (1.6)
------------ -------------
Net cash used by financing
activities (2.4) (17.3)
Effect of exchange rate fluctuations on
cash and cash equivalents 0.7 (0.7)
------------ -------------
Decrease in cash and cash equivalents (1.1) (25.5)
Cash and cash equivalents at beginning
of period 45.7 69.2
------------ -------------
Cash and cash equivalents at end of
period $ 44.6 $ 43.7
============ =============
Note: These statements are unaudited and subject to year-end
adjustments.
Segment and Supplemental Information
Milacron Inc. and Subsidiaries
First Quarter 2006
---------------------------------------------------------------------
(In millions) Three Months Ended
March 31,
----------------------------
2006 2005
--------------------------------------- ------------ -------------
Machinery technologies North America
Sales $ 94.1 $ 87.1
Operating cash flow(a) 2.9 3.5
Segment earnings 1.4 1.9
Percent of sales 1.5% 2.2%
New orders 114.0 94.9
Machinery technologies Europe
Sales $ 36.3 $ 34.3
Operating cash flow(a) (1.6) (1.2)
Segment loss (2.4) (2.2)
Percent of sales -6.6% -6.4%
New orders 40.0 35.4
Mold technologies
Sales $ 44.4 $ 44.2
Operating cash flow(a) 3.3 3.7
Segment earnings 1.9 2.3
Percent of sales 4.3% 5.2%
New orders 43.7 45.1
Eliminations
Sales $ (2.1) $ (0.3)
New orders (2.3) (0.4)
Total plastics technologies
Sales $ 172.7 $ 165.3
Operating cash flow(a) 4.6 6.0
Segment earnings 0.9 2.0
Percent of sales 0.5% 1.2%
New orders 195.4 175.0
Industrial fluids
Sales $ 29.7 $ 27.0
Operating cash flow(a) 2.3 1.9
Segment earnings 1.9 1.4
Percent of sales 6.4% 5.2%
New orders 29.7 27.0
Total continuing operations
Sales $ 202.4 $ 192.3
Operating cash flow(a) 3.6 4.2
Segment earnings 2.8 3.4
Restructuring costs(b) (0.6) (0.4)
Corporate expenses (3.3) (3.5)
Other unallocated expenses - (0.2)
------------ -------------
Operating loss (1.1) (0.7)
Percent of sales -0.5% -0.4%
New orders 225.1 202.0
Ending backlog 116.2 96.0
(a) Represents EBITDA (earnings before interest, income taxes,
depreciation and amortization) before restructuring costs.
(b) Represents costs related to initiatives to reduce operating and
administrative costs.
Note: These statements are unaudited and subject to year-end
adjustments.
Reconciliation of Earnings to Operating Cash Flows
Milacron Inc. and Subsidiaries
First Quarter 2006
----------------------------------------------------------------------
(In millions) Three Months Ended
March 31,
----------------------------
2006 2005
---------------------------------------------------------------------
Machinery technologies North America
Segment earnings $ 1.4 $ 1.9
Depreciation and amortization 1.5 1.6
------------ -------------
Operating cash flow 2.9 3.5
Machinery technologies Europe
Segment loss $ (2.4) $ (2.2)
Depreciation and amortization 0.8 1.0
------------ -------------
Operating cash flow (1.6) (1.2)
Mold technologies
Segment earnings $ 1.9 $ 2.3
Depreciation and amortization 1.4 1.4
------------ -------------
Operating cash flow 3.3 3.7
Total plastics technologies
Segment earnings $0.9 $2.0
Depreciation and amortization 3.7 4.0
------------ -------------
Operating cash flow 4.6 6.0
Industrial fluids
Segment earnings $ 1.9 $ 1.4
Depreciation and amortization 0.4 0.5
------------ -------------
Operating cash flow 2.3 1.9
Consolidated operations
Net loss $ (9.6) $ (9.1)
Provision for income taxes 0.9 0.2
Interest expense - net 7.6 8.2
Restructuring costs(a) 0.6 0.4
Depreciation and amortization 4.1 4.5
------------ -------------
Operating cash flow $3.6 $4.2
============ =============
(a) Represents costs related to initiatives to reduce operating and
administrative costs.
Note: These statements are unaudited and subject to year-end
adjustments.
Calculation of Primary Working Capital as a Percentage of Sales
Milacron Inc. and Subsidiaries
First Quarter 2006
---------------------------------------------------------------------
(In millions) March 31, March 31,
2006 2005
---------------------------------------------------------------------
Total current assets $ 378.1 $ 379.6
Total current liabilities (197.4) (191.8)
------------ -------------
Working capital 180.7 187.8
Deduct:
Cash and cash equivalents (44.6) (43.7)
Notes receivable (3.7) (6.3)
Other current assets (44.7) (46.5)
Add:
Accounts receivable sold 8.7 4.1
Short-term borrowings and long-
term debt due within one year 4.8 3.7
Accrued and other current liabilities 81.8 99.2
------------ -------------
Primary working capital $ 183.0 $ 198.3
============ =============
Sales for the four consecutive quarters
ended
March 31, 2006 $ 819.0
============
March 31, 2005 $ 777.6
=============
Primary working capital as a percentage
of sales 22.3% 25.5%
============ =============
Note: These statements are unaudited and subject to year-end
adjustments.
Historical Information
---------------------------------------------------------------
(In millions, except per-share data)
2004
-----------------------------------
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
---------------------------------------------------------------
Sales $188.9 $191.7 $180.5 $213.1 $774.2
Cost of products sold 156.1 156.2 144.6 169.7 626.6
Cost of products sold
related to restructuring - - 1.7 (0.3) 1.4
-----------------------------------
Total cost of
products sold 156.1 156.2 146.3 169.4 628.0
-----------------------------------
Manufacturing margins 32.8 35.5 34.2 43.7 146.2
Other costs and expenses
Selling and administrative 30.9 30.8 30.8 34.4 126.9
Refinancing costs 6.4 14.6 0.4 - 21.4
Restructuring costs 1.1 1.7 0.6 8.2 11.6
Other - net 1.4 (0.1) 0.5 1.1 2.9
-----------------------------------
Total other costs
and expenses 39.8 47.0 32.3 43.7 162.8
-----------------------------------
Operating earnings (loss) (7.0) (11.5) 1.9 - (16.6)
Interest expense - net (7.9) (15.3) (6.6) (7.5) (37.3)
-----------------------------------
Loss from continuing
operations before income
taxes (14.9) (26.8) (4.7) (7.5) (53.9)
Provision (benefit) from
income taxes 1.1 1.1 0.8 (5.6) (2.6)
-----------------------------------
Earnings (loss) from
continuing operations (16.0) (27.9) (5.5) (1.9) (51.3)
Discontinued operations -
net of income taxes(a)
Loss from operations (0.6) (0.7) - - (1.3)
Net gain on divestitures - 0.8 - - 0.8
-----------------------------------
Total discontinued
operations (0.6) 0.1 - - (0.5)
-----------------------------------
Net earnings (loss) $(16.6)$(27.8) $(5.5) $(1.9)$(51.8)
===================================
Earnings (loss) per common
share
Basic
Continuing operations $(0.43)$(0.99)$(0.18)$(0.08)$(1.72)
Discontinued operations (0.02) - - - (0.01)
-----------------------------------
Net earnings (loss) $(0.45)$(0.99)$(0.18)$(0.08)$(1.73)
===================================
Diluted
Continuing operations $(0.43)$(0.99)$(0.18)$(0.08)$(1.72)
Discontinued operations (0.02) - - - (0.01)
-----------------------------------
Net earnings (loss) $(0.45)$(0.99)$(0.18)$(0.08)$(1.73)
===================================
----------------------------------------------------------------------
2005 2006
------------------------------------------
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Qtr 1
----------------------------------------------------------------------
Sales $192.3 $208.8 $190.7 $217.1 $808.9 $202.4
Cost of products sold 160.1 171.0 157.3 174.6 663.0 168.8
Cost of products sold
related to restructuring - - - - - -
------------------------------------------
Total cost of
products sold 160.1 171.0 157.3 174.6 663.0 168.8
------------------------------------------
Manufacturing margins 32.2 37.8 33.4 42.5 145.9 33.6
Other costs and expenses
Selling and administrative 33.5 33.7 31.3 35.3 133.9 34.2
Refinancing costs - - - - -
Restructuring costs 0.4 0.3 0.1 0.8 1.6 0.6
Other - net (1.0) 0.2 1.3 0.1 0.5 (0.1)
------------------------------------------
Total other costs
and expenses 32.9 34.2 32.7 36.2 136.0 34.7
------------------------------------------
Operating earnings (loss) (0.7) 3.6 0.7 6.3 9.9 (1.1)
Interest expense - net (8.2) (7.0) (7.7) (7.4) (30.3) (7.6)
------------------------------------------
Loss from continuing
operations before income
taxes (8.9) (3.4) (7.0) (1.1) (20.4) (8.7)
Provision (benefit) from
income taxes 0.2 1.0 0.6 (5.6) (3.8) 0.9
------------------------------------------
Earnings (loss) from
continuing operations (9.1) (4.4) (7.6) 4.5 (16.6) (9.6)
Discontinued operations -
net of income taxes(a)
Loss from operations - - - - - -
Net gain 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) $5.7 $(14.1) $(9.6)
==========================================
Earnings (loss) per common
share
Basic
Continuing operations $(0.22)$(0.12)$(0.20) $0.06 $(0.48)$(0.25)
Discontinued operations - 0.01 0.02 0.03 0.05 -
------------------------------------------
Net earnings (loss) $(0.22)$(0.11)$(0.18) $0.09 $(0.43)$(0.25)
==========================================
Diluted
Continuing operations $(0.22)$(0.12)$(0.20) $0.04 $(0.48)$(0.25)
Discontinued operations - 0.01 0.02 0.01 0.05 -
------------------------------------------
Net earnings (loss) $(0.22)$(0.11)$(0.18) $0.05 $(0.43)$(0.25)
==========================================
(a) In 2005, represents adjustments of reserves related to prior
divestitures. For the year ended December 31, 2004, reflects the
presentation of Grinding Wheels as a discontinued operation prior
to its divestiture in the second quarter.
Historical Segment and Supplemental Information
---------------------------------------------------------------------
(In Millions) 2004
----------------------------------
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
---------------------------------------------------------------------
Machinery technologies
North America
Sales $77.3 $83.2 $77.2 $96.7 $334.4
Operating cash flow(a) 1.4 5.3 5.9 10.8 23.4
Segment earnings (loss) (0.6) 3.4 4.1 9.1 16.0
New orders 79.1 87.2 80.3 90.5 337.1
Machinery technologies Europe
Sales $42.5 $42.4 $37.5 $44.6 $167.0
Operating cash flow(a) 2.2 2.3 0.8 0.8 6.1
Segment earnings (loss) 1.1 1.3 (0.3) (0.2) 1.9
New orders 40.0 45.7 36.3 33.0 155.0
Mold technologies
Sales $43.3 $39.9 $39.6 $44.3 $167.1
Operating cash flow(a) 3.0 1.5 2.7 3.8 11.0
Segment earnings (loss) 1.4 (0.1) 1.1 1.9 4.3
New orders 43.0 40.5 39.5 44.8 167.8
Eliminations
Sales $(0.4) $(1.5) $(0.4) $(1.0) $(3.3)
New orders (1.3) (1.0) (0.2) (0.1) (2.6)
Total plastics technologies
Sales $162.7 $164.0 $153.9 $184.6 $665.2
Operating cash flow(a) 6.6 9.1 9.4 15.4 40.5
Segment earnings 1.9 4.6 4.9 10.8 22.2
New orders 160.8 172.4 155.9 168.2 657.3
Industrial fluids
Sales $26.2 $27.7 $26.6 $28.5 $109.0
Operating cash flow(a) 3.0 3.9 3.3 0.8 11.0
Segment earnings 2.5 3.4 2.8 0.5 9.2
New orders 26.2 27.8 26.6 28.5 109.1
Total continuing operations(b)
Sales $188.9 $191.7 $180.5 $213.1 $774.2
Operating cash flow(a) 5.8 9.9 9.6 12.8 38.1
Segment earnings 4.4 8.0 7.7 11.3 31.4
Refinancing costs(c) (6.4) (14.6) (0.4) - (21.4)
Restructuring costs(d) (1.1) (1.7) (2.3) (7.9) (13.0)
Corporate expenses (3.3) (2.9) (2.6) (3.1) (11.9)
Other unallocated
expenses(e) (0.6) (0.3) (0.5) (0.3) (1.7)
-----------------------------------
Operating earnings (loss) (7.0) (11.5) 1.9 - (16.6)
Percent of sales -3.7% -6.0% 1.1% 0.7% -2.1%
New orders 187.0 200.2 182.5 196.7 766.4
Ending backlog 89.5 97.7 100.1 87.3 87.3
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2005 2006
-----------------------------------------
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Qtr 1
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Machinery technologies
North America
Sales $87.1 $95.4 $86.7 $107.3 $376.5 $94.1
Operating cash flow(a) 3.5 6.5 5.8 7.2 23.0 2.9
Segment earnings (loss) 1.9 4.9 4.3 5.6 16.7 1.4
New orders 94.9 100.7 89.2 101.7 386.5 114.0
Machinery technologies Europe
Sales $34.3 $41.5 $36.8 $36.9 $149.5 $36.3
Operating cash flow(a) (1.2) 0.6 (0.5) 0.5 (0.6) (1.6)
Segment earnings (loss) (2.2) (0.5) (1.5) (0.7) (4.9) (2.4)
New orders 35.4 42.7 34.2 40.3 152.6 40.0
Mold technologies
Sales $44.2 $44.4 $40.6 $44.2 $173.4 $44.4
Operating cash flow(a) 3.7 2.1 0.7 3.4 9.9 3.3
Segment earnings (loss) 2.3 0.7 (0.7) 1.6 3.9 1.9
New orders 45.1 43.4 40.7 44.5 173.7 43.7
Eliminations
Sales $(0.3) $(0.6) $(0.5) $(1.3) $(2.7) $(2.1)
New orders (0.4) (0.5) (0.4) (1.0) (2.3) (2.3)
Total plastics technologies
Sales $165.3 $180.7 $163.6 $187.1 $696.7 $172.7
Operating cash flow(a) 6.0 9.2 6.0 11.1 32.3 4.6
Segment earnings 2.0 5.1 2.1 6.5 15.7 0.9
New orders 175.0 186.3 163.7 185.5 710.5 195.4
Industrial fluids
Sales $27.0 $28.1 $27.1 $30.0 $112.2 $29.7
Operating cash flow(a) 1.9 2.4 2.2 4.4 10.9 2.3
Segment earnings 1.4 1.9 1.8 4.0 9.1 1.9
New orders 27.0 28.2 27.1 29.8 112.1 29.7
Total continuing operations(b)
Sales $192.3 $208.8 $190.7 $217.1 $808.9 $202.4
Operating cash flow(a) 4.2 8.5 5.2 12.1 30.0 3.6
Segment earnings 3.4 7.0 3.9 10.5 24.8 2.8
Refinancing costs(c) - - - - - -
Restructuring costs(d) (0.4) (0.3) (0.1) (0.8) (1.6) (0.6)
Corporate expenses (3.5) (3.0) (3.0) (3.3) (12.8) (3.3)
Other unallocated
expenses(e) (0.2) (0.1) (0.1) (0.1) (0.5) -
------------------------------------------
Operating earnings (loss) (0.7) 3.6 0.7 6.3 9.9 (1.1)
Percent of sales -0.4% 1.7% 0.4% 2.9% 1.2% -0.5%
New orders 202.0 214.5 190.8 215.3 822.6 225.1
Ending backlog 96.0 99.2 99.6 96.5 96.5 116.2
(a) Represents EBITDA (earnings before interest, income taxes,
depreciation and amortization) before refinancing costs and
restructuring costs.
(b) Reflects the presentation of Grinding Wheels as a discontinued
operation in 2004.
(c) Represents costs incurred in pursuing various alternatives to the
company's March 12, 2004 refinancing of $200 million of debt and
other obligations and costs that resulted from the refinancing and
recapitalization of the company.
(d) Represents costs related to initiatives to reduce operating and
administrative costs.
(e) Other unallocated expenses include financing costs including costs
related to the sale of accounts receivable prior to March 12,
2004.
Updated: May 1, 2006
Note: The amounts below are approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 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-K on file with the Securities and Exchange Commission.
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Quarter Ended
-------------------
(In millions) June 30, 2006
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Projected profit & loss items
Sales(1) $210 - 224
Total plastics technologies 182 - 192
Industrial fluids 29 - 31
Segment earnings
Total plastics technologies 2 - 4
Industrial fluids 1.5 - 2.5
Corporate expenses 3 - 4
Interest expense - net 7 - 8
Provision for income taxes 1
Restructuring costs 9 - 12
Loss after tax(2) (21) - (13)
Average shares outstanding - basic 48 - 49
Average shares outstanding - diluted 106 - 107
Projected cash flow & balance sheet items
Depreciation 4 - 5
Primary working capital - increase (decrease)(3) 4 - 8
Cash pension contribution 1
Capital expenditures 4 - 5
Cash interest 13 - 14
Cash dividends (less than) 1
Cash tax refunds 2 - 4
Cash restructuring 1 - 2
1 Decreased over the same period a year ago due to the weakening of
the Euro of approximately $3 million in quarter ended June 30,
2006.
2 Includes $3.4 million of expenses related to the U.S. defined
benefit plan in quarter ended June 30, 2006 (versus $3.2 million
in quarter ended June 30, 2005).
Includes $1.1 million of expenses related to Sarbanes-Oxley
compliance in the quarter ended June 30, 2006 (versus $2.3 million
in quarter ended June 30, 2005).
3 inventory + receivables - trade payables - advance billings
Comments & explanations
Assumes quarter ended March 31, 2006 foreign exchange rates (e.g.,
USD/EUR = 1.20770), and no further acquisitions or divestitures.
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