CINCINNATI MILACRON POSTS HIGHER SALES, ORDERS AND OPERATING EARNINGS IN 2ND QUARTER; PLASTICS MACHINERY ON PACE FOR RECORD YEAR
CINCINNATI, OHIO, July 20 /PRNewswire/ -- Cincinnati Milacron Inc. (NYSE:CMZ) today announced that 1993 second-quarter sales increased 27 percent to $237 million from $186 million in the second quarter of 1992, with new orders jumping 31 percent to $233 million, versus $178 million. Earnings before extraordinary items rose significantly to $5.8 million, or $.18 per share, compared to $2.8 million, or $.10 per share, in the year-ago quarter. Net earnings were $1.4 million, or $.04 per share, and included a previously announced one-time extraordinary charge of $4.4 million for prepayment of 12 percent debentures. This compared to net earnings in the second quarter last year of $3.5 million, or $.12 per share, which included an extraordinary tax credit of $0.7 million, or $.02 per share. "Most of the sales and new order increases were due to the addition of Valenite, our metalcutting tool subsidiary acquired earlier this year, but we are also getting a major boost from our plastics machinery group, which is on pace for a record year," explained Daniel J. Meyer, Milacron chairman and chief executive officer. "And, despite continued recession in Europe and a weak recovery in the U.S., we posted improved operating earnings by maintaining our overall manufacturing margins at 24 percent in the quarter, up from 20.5 percent in the second quarter of 1992," he said.
As expected, machine tool sales and orders declined from the year-ago levels due to the deep recession in Europe and the continued slump in the aerospace industry worldwide. "These conditions also held back profitability," said Raymond E. Ross, president and chief operating officer. "However, we continue to gain share in the U.S. market for standard machine tools with our newly designed Wolfpack products, and that's at the expense of both domestic and imported competitors," he said.
"Our plastics machinery business is well on its way to a record year in sales and new orders in 1993," Ross said. The driving force in this business segment is the company's broad line of leading-edge Wolfpack injection molding machines, which have been highly successful in the U.S. market.
Milacron's grinding wheel business, which is primarily domestic, showed good improvement in sales and earnings over last year, Ross said. Sales and earnings of the company's metalworking fluids declined, however, due to the prolonged recession in Europe. Valenite metalcutting tools had a good quarter, contributing positively to the group's profitability.
"We were on target for the first half of the year and we plan to show significant improvement in our results in the second half," Meyer said. "We are concerned, however, about the inconsistency and general weakness of the economic recovery in the U.S. and the recession in Europe, which has proved to be longer and deeper than most economists expected. But, with our steady stream of new Wolfpack products, we believe we will be ready for an economic upturn whenever it comes," he concluded. CINCINNATI MILACRON INC. 12 Weeks Ended 12 Weeks Ended June 19, 1993 June 13, 1992 Sales $237,188,000 $185,603,000 Earnings Before Extraordinary Items $5,835,000 $2,766,000 Per Share $.18 $.10 Extraordinary Items: Loss on Early Extinguishment of Debt $(4,407,000) --- Per Share $(.14) --- Tax Benefit from Loss Carryforward --- $700,000 Per Share --- $.02 Net Earnings $1,428,000 $3,466,000 Per Share $.04 $.12 Average Weighted Common Shares Outstanding 32,827,000 27,672,000 24 Weeks Ended 24 Weeks Ended June 19, 1993 June 13, 1992 Sales $458,212,000 $345,615,000 Earnings Before Extraordinary Items and Cumulative Effect of Accounting Changes $10,108,000 $3,885,000 Per Share $.33 $.14 Extraordinary Items: Loss on Early Extinguishment of Debt $(4,407,000) --- Per Share $(.14) --- Tax Benefit from Loss Carryforward --- $900,000 Per Share --- $.03 Cumulative effect of Accounting Changes $(52,125,000) --- Per Share $(1.72) --- Net Earnings (Loss) $(46,424,000) $4,785,000 Per Share $(1.53) $.17 Average Weighted Common Shares Outstanding 30,433,000 27,620,000 Common Shares Outstanding At Quarter-End 33,472,000 27,411,000 -0- 7/20/93 /CONTACT: Albert Beaupre of Cincinnati Milacron Inc., 513-841-7241/ (CMZ)
CO: Cincinnati Milacron Inc. ST: Ohio IN: MAC SU: ERN
LG -- NY026 -- 6672 07/20/93 10:14 EDT
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|Date:||Jul 20, 1993|
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