-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LRPDehBHUe6L5fPX5nj/kAZQL0ms+20A8p5f5GQt9488gvlBHoGCyZBcoy8Y4IHc F+DRMapFiVDdZ6iu5B3ooQ== 0000716823-99-000005.txt : 19990517 0000716823-99-000005.hdr.sgml : 19990517 ACCESSION NUMBER: 0000716823-99-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MILACRON INC CENTRAL INDEX KEY: 0000716823 STANDARD INDUSTRIAL CLASSIFICATION: MACHINE TOOLS, METAL CUTTING TYPES [3541] IRS NUMBER: 311062125 STATE OF INCORPORATION: DE FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-08485 FILM NUMBER: 99621385 BUSINESS ADDRESS: STREET 1: 4701 MARBURG AVE CITY: CINCINNATI STATE: OH ZIP: 45209 BUSINESS PHONE: 5138418100 MAIL ADDRESS: STREET 1: 4701 MARBURG AVE CITY: CINCINNATI STATE: OH ZIP: 45209 FORMER COMPANY: FORMER CONFORMED NAME: CINCINNATI MILACRON INC /DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: CINCINNATI MILACRON HOLDINGS INC DATE OF NAME CHANGE: 19830503 FORMER COMPANY: FORMER CONFORMED NAME: CINCINNATI MILLING MACHINE CO DATE OF NAME CHANGE: 19600201 10-Q 1 ============================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------- FORM 10-Q [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarter ended March 31, 1999 [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from __________ to __________ Commission file number 1-8485 MILACRON INC. (Exact name of registrant as specified in its charter) Delaware 31-1062125 (In millions, except share and per-share amounts) Quarter Ended March 31, ---------------------- 1999 1998 --------- -------- Sales $ 392.0 $ 356.5 Cost of products sold 288.4 259.9 ------- ------- Manufacturing margins 103.6 96.6 ------- ------- Other costs and expenses Selling and administrative 70.4 64.1 Other - net 2.5 4.2 ------- ------- Total other costs and expenses 72.9 68.3 ------- ------- Operating earnings 30.7 28.3 Interest Income .4 .4 Expense (9.6) (7.8) ------- ------- Interest - net (9.2) (7.4) ------- ------- Earnings before income taxes and minority shareholders' interests 21.5 20.9 Provision for income taxes 6.3 5.8 ------- ------- Earnings from continuing operations before minority shareholders' interests 15.2 15.1 Minority shareholders' interests in earnings of subsidiaries .1 .1 ------- ------- Earnings from continuing operations 15.1 15.0 Discontinued operations net of income taxes - 2.6 ------- ------- Net earnings $ 15.1 $ 17.6 ======= ======= Earnings per common share Basic Continuing operations $ .40 $ .38 Discontinued operations - .07 ------- ------- Net earnings $ .40 $ .45 ======= ======= Diluted Continuing operations $ .40 $ .37 Discontinued operations - .07 ------- ------- Net earnings $ .40 $ .44 ======= ======= Dividends per common share $ .12 $ .12 Weighted average common shares outstanding assuming dilution (in thousands) 37,500 39,708 See notes to consolidated condensed financial statements. Milacron Inc. and Subsidiaries Consolidated Condensed Balance Sheet (Unaudited)
(In millions) March 31, Dec. 31, 1999 1998 -------- -------- Assets Current assets Cash and cash equivalents $ 37.6 $ 48.9 Notes and accounts receivable, less allowances of $12.6 in 1999 and $12.1 in 1998 222.5 226.1 Receivable from sale of discontinued machine tools segment 6.9 10.8 Inventories Raw materials 43.3 45.6 Work-in-process and finished parts 200.2 204.6 Finished products 161.3 150.8 -------- -------- Total inventories 404.8 401.0 Other current assets 45.8 43.7 -------- -------- Total current assets 717.6 730.5 Property, plant and equipment 596.5 605.2 Less accumulated depreciation (250.5) (254.3) -------- -------- Property, plant and equipment - net 346.0 350.9 Goodwill 389.7 397.6 Other noncurrent assets 72.8 78.1 -------- -------- Total assets $1,526.1 $1,557.1 ======== ======== Liabilities and shareholders' equity Current liabilities Amounts payable to banks and current portion of long-term debt $ 211.3 $ 185.2 Trade accounts payable 136.7 155.2 Advance billings and deposits 32.5 31.7 Accrued and other current liabilities 165.4 178.8 -------- -------- Total current liabilities 545.9 550.9 Long-term accrued liabilities 189.2 193.9 Long-term debt 329.9 335.7 -------- -------- Total liabilities 1,065.0 1,080.5 -------- -------- Commitments and contingencies - - Shareholders' equity Preferred shares 6.0 6.0 Common shares (outstanding: 37.0 in 1999 and 37.8 in 1998) 365.4 379.0 Reinvested earnings 116.5 106.0 Accumulated other comprehensive income (loss) (26.8) (14.4) -------- -------- Total shareholders' equity 461.1 476.6 -------- -------- Total liabilities and shareholders' equity $1,526.1 $1,557.1 ======== ========
See notes to consolidated condensed financial statements. Milacron Inc. and Subsidiaries Consolidated Condensed Statement of Cash Flows (Unaudited)
(In millions) Quarter Ended March 31, ---------------------- 1999 1998 -------- -------- Increase (decrease) in cash and cash equivalents Operating activities cash flows Net earnings $ 15.1 $ 17.6 Operating activities providing (using) cash Depreciation and amortization 14.7 14.4 Deferred income taxes .7 (3.2) Working capital changes Notes and accounts receivable (7.4) 21.4 Inventories (15.5) (19.1) Other current assets (1.5) (4.7) Trade accounts payable (14.6) (.7) Accrued and other current liabilities 9.0 10.8 Decrease (increase) in other noncurrent assets 4.1 (2.7) Decrease in long-term accrued liabilities (.7) (5.3) Other - net (2.2) (.8) -------- -------- Net cash provided by operating activities 1.7 27.7 -------- -------- Investing activities cash flows Capital expenditures (15.2) (12.0) Net disposals of property, plant and equipment .4 1.1 Acquisitions (10.5) (12.5) Divestitures 3.2 - -------- -------- Net cash used by investing activities (22.1) (23.4) -------- -------- Financing activities cash flows Dividends paid (4.6) (4.8) Issuance of long-term debt - 1.5 Repayments of long-term debt (1.5) (.5) Increase in amounts payable to banks 32.9 21.5 Issuance of common shares - 4.2 Purchase of treasury and other common shares (17.7) (8.9) -------- -------- Net cash provided by financing activities 9.1 13.0 -------- -------- Increase (decrease) in cash and cash equivalents (11.3) 17.3 Cash and cash equivalents at beginning of period 48.9 25.7 -------- -------- Cash and cash equivalents at end of period $ 37.6 $ 43.0 ======== ========
See notes to consolidated condensed financial statements. Milacron Inc. and Subsidiaries Notes to Consolidated Condensed Financial Statements (Unaudited) Basis of Presentation - --------------------- In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments, all of which are normal and recurring, necessary to present fairly the company's financial position, results of operations and cash flows. The Consolidated Condensed Balance Sheet at December 31, 1998, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accounting policies followed by the company are set forth in the "Summary of Significant Accounting Policies" note to the consolidated financial statements included in the company's Annual Report on Form 10-K for the year ended December 31, 1998. Discontinued Operations - ----------------------- On October 2, 1998, the company completed the sale of its machine tools segment (MTG). The proceeds from the sale, including post-closing adjustments, were approximately $187 million, of which $180 million was received on the closing date and used to repay bank borrowings incurred for the acquisition of Uniloy (see Acquisitions). MTG was largely involved in the manufacture and sale of aerospace systems and stand-alone machinery for general metalworking. The Consolidated Condensed Statement of Earnings for the first quarter of 1998 has been restated to present the operating results of MTG as a discontinued operation. MTG's sales in the first quarter of 1998 were $120.9 million. Acquisitions - ------------ In February, 1998, the company acquired Wear Technology, which has annual sales of approximately $10 million and serves the aftermarket for new and rebuilt twin screws for extrusion systems, and Northern Supply, a regional catalog distribution company offering supplies to plastics processors for injection molding, blow molding and extrusion with annual sales of approximately $5 million. In May, 1998, the company acquired Autojectors, Inc., a leading U.S. producer of vertical insert injection molding machinery widely used to make medical, electrical and automotive components. Autojectors has annual sales of approximately $20 million. In September, 1998, the company acquired Master Unit Die Products, Inc., a leading North American manufacturer of quick-change mold bases for the plastics industry. Master Unit Die Products has annual sales in excess of $10 million. Also, in September, 1998, the company acquired the assets of the plastics machinery division of Johnson Controls, Inc. (Uniloy) for approximately $199 million, subject to additional post-closing adjustments. Uniloy, which is known for its Uniloy brand of equipment, as well as various other brands, had annual sales of more than $190 million for the fiscal year ended September 30, 1998, and is one of the world's leading providers of blow molding machines, as well as structural foam systems, aftermarket parts, services and molds for blowmolding. On December 30, 1998, the company acquired Werkzeugfabrik GmbH Konigsee (Werko), a manufacturer of high-speed steel drills. Located in eastern Germany, Werko has annual sales of approximately $25 million. All of the acquisitions are being accounted for under the purchase method and were financed through the use of available cash and bank borrowings. The aggregate cost of the acquisitions, including professional fees and other related costs, is expected to total approximately $242.2 million. The allocation of the aggregate cost of the acquisitions to the assets acquired and liabilities assumed is presented in the table that follows.
(In millions) 1998 -------- Cash and cash equivalents $ 2.1 Accounts receivable 34.8 Inventories 71.9 Other current assets 3.9 Property, plant and equipment 30.1 Goodwill 175.7 Other noncurrent assets 10.6 ------ Total assets 329.1 Current portion of long-term debt 7.0 Other current liabilities 67.3 Long-term accrued liabilities 1.7 Long-term debt 10.9 ------ Total liabilities 86.9 ------ Total acquisition cost $242.2 ======
SEVERANCE EXPENSE - ----------------- In the first quarter of 1998, the company recorded severance expense of $2.0 million ($1.4 million after tax) related to a workforce reduction plan involving approximately 60 employees at Widia, the company's European cutting tool company. As a result of the workforce reduction and other actions at Widia, the company expects to achieve annual pretax cost savings of approximately $5.0 million, which began to phase in during the fourth quarter of 1998. INCOME TAXES - ------------ In both 1999 and 1998, the provision for income taxes consists of U.S. federal and state and local income taxes as well as non-U.S. income taxes. The provision also includes the effects of adjustments of deferred tax assets and related valuation allowances in certain non-U.S. jurisdictions. At December 31, 1998, certain of the company's non-U.S. subsidiaries reported net operating loss carryforwards aggregating approximately $120 million, substantially all of which have no expiration dates. This amount included $39 million related to Werko (see Acquisitions), which was acquired on December 30, 1998. The deferred tax assets related to certain of these loss carryforwards were partially reserved through valuation allowances which totaled approximately $28 million. During the first quarter of 1999, the company reevaluated Werko's preacquisition profits and losses. As a result of the reevaluation, the company's calculation of Werko's net operating loss carryforwards has been increased to approximately $66 million and the related valuation allowances have been increased by $6 million. The additional deferred tax assets and valuation allowances will be recorded in 1999 in connection with the allocation of the Werko acquisition costs. Effective January 1, 1999, the German federal income tax rate on undistributed earnings was reduced from 45% to 40%. As a result, the net carrying value of the company's net deferred assets in Germany, including valuation allowances, was reduced by approximately $1.8 million. This increase in the first quarter tax provision was substantially offset by adjustments of certain other non-U.S. accrued and deferred tax balances. The company reviews the valuation of all deferred tax assets on an ongoing basis and concluded in 1998 that it was more likely than not that a portion of these assets would be realized in the future. Accordingly, certain non-U.S. valuation allowances were reversed which caused the effective tax rate for 1998 to be less than the U.S. statutory rate. Similarly, the 1999 effective tax rate also provides for the reversal of non-U.S. valuation allowances due to the expectation of additional net operating loss carryforward utilization. The 1999 rate also includes the effect of tax reserve adjustments to more accurately reflect actual expected liabilities. These benefits are offset to some degree by a provision for the write down to the company's net deferred tax assets in Germany from the "without distribution" rate to the lower "with distribution" rate of 30%. RECEIVABLES - ----------- In accordance with the company's receivables purchase agreement with an independent party, the company sells on an ongoing basis undivided percentage ownership interests of up to $75 million in designated pools of accounts receivable. At March 31, 1999, December 31, 1998, March 31, 1998 and December 27, 1997, the undivided interests in the company's gross accounts receivable that had been sold to the purchaser aggregated $71.2 million, $63.1 million, $75.0 million and $75.0 million, respectively. Increases and decreases in the amount sold are reported as operating cash flows in the Consolidated Condensed Statement of Cash Flows. Costs related to the sales are included in other costs and expenses-net in the Consolidated Condensed Statement of Earnings. LIABILITIES - ----------- The components of accrued and other current liabilities and long-term accrued liabilities are shown in the following tables.
(In millions) Mar. 31, Dec. 31, 1999 1998 -------- -------- Accrued and other current liabilities Accrued salaries, wages and other compensation $ 57.5 $ 49.1 Accrued and deferred income taxes 15.6 (.5) Other accrued expenses 92.3 130.2 -------- -------- $ 165.4 $ 178.8 ======== ======== Long-term accrued liabilities Accrued pension and other compensation $ 67.8 $ 74.9 Accrued postretirement health care benefits 40.3 40.6 Accrued and deferred income taxes 27.3 26.6 Minority shareholders' interests 20.0 19.9 Other 33.8 31.9 -------- -------- $ 189.2 $ 193.9 ======== ========
Long-term Debt The components of long-term debt are shown in the following table.
(In millions) Mar. 31, Dec. 31, 1999 1998 ------- -------- Long-term debt 7-7/8% Notes due 2000 $ 100.0 $ 100.0 8-3/8% Notes due 2004 115.0 115.0 Revolving credit facility 82.8 84.8 Other 36.6 43.7 -------- -------- Total long-term debt 334.4 343.5 Less current maturities (4.5) (7.8) -------- -------- $ 329.9 $ 335.7 ======== ========
Outstanding borrowings under the company's revolving credit facility of DM 149 million ($82.8 million) at March 31, 1999, and $10.0 million and DM 125 million ($74.8 million) at December 31, 1998 are included in long-term debt based on the expectation that these borrowings will remain outstanding for more than one year. These borrowings are at variable interest rates, which had a weighted average of 4.6% per year at March 31, 1999 and 4.8% per year at December 31, 1998. LINES OF CREDIT - --------------- At March 31, 1999, the company had lines of credit with various U.S. and non-U.S. banks of approximately $629 million, including a $375 million committed revolving credit facility. These credit facilities support letters of credit and leases in addition to providing borrowings under varying terms. Under the provisions of the revolving credit facility, the company's additional borrowing capacity totaled approximately $224 million at March 31, 1999. SHAREHOLDERS' EQUITY - -------------------- On October 2, 1998, the company announced its intention to repurchase up to two million of its outstanding common shares on the open market, of which 1,239,700 were repurchased during the fourth quarter of 1998. The remaining 760,300 shares were repurchased in the first quarter of 1999 at a cost of $13.1 million. In the first quarter of 1998, the company repurchased a total of 339,900 treasury shares on the open market at a cost of $8.2 million to partially meet current and future needs of management incentive, employee benefit and dividend reinvestment programs. Additional shares totaling 88,309 and 23,664 were purchased in the first quarter of 1999 and 1998, respectively, in connection with current exercises of stock options and restricted share grants in lieu of the use of authorized but unissued shares or treasury shares. COMPREHENSIVE INCOME - -------------------- Total comprehensive income represents the net change in shareholders' equity during a period from sources other than transactions with shareholders and, as such, includes net earnings. For the company, the only other component of total comprehensive income is the change in the cumulative foreign currency translation adjustments recorded in shareholders' equity. Total comprehensive income and changes in total shareholders' equity are as follows:
(In millions) Quarter Ended March 31, ---------------------------------------- 1999 1998 ------------------ ----------------- Total Total Total Total Compre- Share- Compre- Share- hensive holders' hensive holders' Income Equity Income Equity ------- -------- ------- -------- Balance at beginning of period $ 476.6 $ 471.9 Net common share transactions (13.6) (4.7) Net earnings $ 15.1 15.1 $ 17.6 17.6 Foreign currency translation adjustments (12.4) (12.4) (2.3) (2.3) ------- ------- Total comprehensive income $ 2.7 $ 15.3 ======= ======= Cash dividends (4.6) (4.8) -------- -------- Balance at end of period $ 461.1 $ 477.7 ======== ========
CONTINGENCIES - ------------- The company is involved in remedial investigations and actions at various locations, including former plant facilities, and EPA Superfund sites where the company and other companies have been designated as potentially responsible parties. The company accrues remediation costs, on an undiscounted basis, when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accruals for estimated losses from environmental remediation obligations are generally recognized no later than the completion of a remediation feasibility study. The accruals are adjusted as further information becomes available or circumstances change. Environmental costs have not been material in the past. Various lawsuits arising during the normal course of business are pending against the company and its consolidated subsidiaries. In the opinion of management, the ultimate liability, if any, resulting from these matters will have no significant effect on the company's consolidated financial position or results of operations. ORGANIZATION - ------------ The company has two business segments: plastics technologies and cutting process technologies. Financial information for each of these segments for the quarters ended March 31, 1999 and 1998 is presented below.
(In millions) Quarter Ended March 31, ---------------------- 1999 1998 -------- -------- Sales Plastics technologies $ 217.2 $ 180.3 Cutting process technologies 174.8 176.2 -------- -------- $ 392.0 $ 356.5 ======== ======== Operating earnings Plastics technologies $ 20.1 $ 16.2 Cutting process technologies 16.1 18.6 Corporate expenses (4.2) (5.1) Other unallocated expenses (a) (1.3) (1.4) -------- -------- Operating earnings 30.7 28.3 Interest expense-net (9.2) (7.4) -------- -------- Earnings from continuing operations before income taxes and minority shareholders' interest $ 21.5 $ 20.9 ======== ======== New orders Plastics technologies $ 206.5 $ 180.3 Cutting process technologies 181.5 182.7 -------- -------- $ 388.0 $ 363.0 ======== ========
(a) Includes financing costs related to the sale of accounts receivable. EARNINGS PER COMMON SHARE - ------------------------- Basic earnings per common share data are based on the weighted-average number of common shares outstanding during the respective periods. Diluted earnings per common share data are based on the weighted-average number of common shares outstanding adjusted to include the effects of potentially dilutive stock options and certain restricted shares. RECENTLY ISSUED PRONOUNCEMENTS - ------------------------------ During the second quarter of 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities." This standard is effective for the company beginning in 2000. It establishes comprehensive accounting and reporting requirements for the recognition and measurement of derivative financial instruments and hedging activities including a requirement that derivatives be measured at fair value and recognized in the statement of financial position. The company enters into forward contracts, which are a form of derivative instrument, to minimize the effect of foreign currency exchange rate fluctuations. The company is evaluating the effect of this standard on the company's financial position and results of operations. However, management currently believes that the effect will not be material. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Unaudited) RESULTS OF OPERATIONS - --------------------- Milacron operates in two business segments: plastics technologies and cutting process technologies. DISCONTINUED OPERATIONS On October 2, 1998, we completed the sale of our machine tools group (MTG) for proceeds of $187 million, including post-closing adjustments. All comparisons of "results of operations" in this Management's Discussion and Analysis have been restated to exclude the historical operations of MTG. RECLASSIFICATION OF FINANCIAL STATEMENT Beginning in the fourth quarter of 1998, expense for minority shareholders' interests in the earnings of subsidiaries, which was previously included as a component of operating earnings in the Consolidated Condensed Statement of Earnings, is presented as a separate component of earnings from continuing operations after income taxes. Also beginning in the fourth quarter of 1998, amortization expense related to deferred debt issuance costs has been reclassified from other costs and expenses-net to interest expense. Amounts for the first quarter of 1998 have been reclassified to conform to these presentations. ACQUISITIONS In February, 1998, Milacron acquired Wear Technology and Northern Supply. Wear Technology is a McPherson, Kansas company with annual sales of approximately $10 million which primarily serves the aftermarket for new and rebuilt twin screws for extrusion systems. Northern Supply, with annual sales of approximately $5 million, offers supplies to plastics processors for injection molding, blow molding and extrusion through distribution centers in Minneapolis, Minnesota and Charlotte, North Carolina. In May, 1998, we acquired Autojectors, Inc., a leading U.S. producer of vertical insert injection molding machinery widely used to make medical, electrical and automotive components. With annual sales of approximately $20 million, Autojectors operates through two manufacturing facilities near Fort Wayne, Indiana. Effective September 30, 1998, we acquired Master Unit Die Products, Inc., a leading North American manufacturer of quick-change mold bases for the plastics industry. Master Unit Die Products has annual sales in excess of $10 million. Also on September 30, 1998, we acquired the assets of Uniloy, the plastics machinery division of Johnson Controls, Inc., for approximately $199 million, subject to additional post-closing adjustments. Uniloy, which is known for its Uniloy brand of equipment, as well as various other brands, had sales of more than $190 million for the fiscal year ending on September 30, 1998, and is one of the world's leading providers of blow molding machines, as well as structural foam systems, aftermarket parts, services and molds for blowmolding. On December 30, 1998, we acquired Werkzeugfabrik GmbH Konigsee (Werko), a manufacturer of high-speed steel drills. Located in eastern Germany, Werko has annual sales of approximately $25 million. With the exception of Werko, all of the businesses purchased in 1998 are included in the plastics technologies segment from the respective dates of acquisition. Werko is included in the cutting process technologies segment beginning in 1999. In the aggregate, these acquisitions had the effect of increasing first quarter 1999 new orders and sales by $57 million and $58 million, respectively, in relation to 1998. All of the acquisitions were financed through available cash and bank borrowings and have been accounted for under the purchase method of accounting. PRESENCE OUTSIDE THE U.S. In recent years, Milacron's growth outside the U.S. has allowed it to become more globally balanced. In 1998, markets outside the U.S. represented the following percentages of our consolidated sales: Europe 29%; Asia 7%; Canada and Mexico 6%; and the rest of the world 2%. As a result of this geographic mix, foreign currency exchange rate fluctuations affect the translation of our sales and earnings, as well as consolidated shareholders' equity. During the first quarter of 1999, the weighted- average exchange rates of most major European currencies in relation to the U.S. dollar were slightly stronger than in the comparable period of 1998. As a result, Milacron experienced favorable translation effects on new orders and sales of $2 million and $3 million, respectively. The effect on earnings was not significant. However, between December 31, 1998 and March 31, 1999, the new European currency, the euro, and the sovereign currencies of the eleven participating countries weakened against the dollar by approximately 7%. This resulted in a $12 million reduction in consolidated shareholders' equity due to unfavorable foreign currency translation adjustments. If the major European and other world currencies should weaken further against the U.S. dollar in future periods, we will experience a negative effect in translating our non-U.S. new orders, sales and, possibly, net earnings when compared to historical results. NEW ORDERS AND BACKLOG New orders in the first quarter of 1999 were $388 million, which represents a $25 million, or 7%, increase from $363 million in the comparable period of 1998. Excluding the effects of the 1998 acquisitions, new orders decreased by $32 million, or 9%. In the plastics technologies segment, new orders increased by $27 million, or 15%, which was more than accounted for by the addition of Uniloy and the other 1998 acquisitions. Orders for extrusion systems increased in both the U.S. and Europe but orders for injection molding machines decreased worldwide due to softness in many capital goods markets. However, assuming the consumer economy remains strong, we expect the order rate for injection molding to improve later in the year, especially in the U.S. Orders for cutting process technologies products were $182 million, which represents a modest decrease from $183 million in the first quarter of 1998. Excluding the effects of the Werko acquisition and currency effects, new orders decreased by $9 million, or 5%. The decrease was due primarily to lower North American orders for round metalcutting tools, grinding wheels and metalcutting fluids that resulted from soft economic conditions in many of the industrial markets served by these products. Orders for Valenite and Widia products approximated the 1998 levels. U.S. export orders were $35 million in the first quarter of 1999, of which Uniloy accounted for approximately $6 million. In the first quarter of 1998, export orders totaled $31 million. Milacron's backlog of unfilled orders totaled $261 million at March 31, 1999, compared to $247 million at December 31, 1998, and $200 million at March 31, 1998. The increase in relation to year-end 1998 related principally to an increase at Uniloy which was offset to some degree by a lower backlog for injection molding machines. SALES Sales in the first quarter of 1999 were $392 million, which represented a $35 million, or 10%, increase from $357 million in 1998. Excluding the effect of the 1998 acquisitions, consolidated sales decreased by approximately 6%. Sales of plastics technologies products increased by $37 million, or 21%. The segment's sales include an incremental $53 million related to the 1998 acquisitions. Shipments of injection molding machines decreased, especially in the U.S., due to the aforementioned reduction in orders, but sales of U.S.- built extrusion systems increased significantly. Sales of cutting process technologies products decreased modestly to $175 million despite the effect of the Werko acquisition. North American shipments of round metalcutting tools decreased due to customers reducing their inventory levels, delays in large programs and overall softness in many industrial markets. Sales of Valenite and Widia metalcutting products approximated the levels achieved in 1998. Export sales were $39 million in the first quarter of 1999 compared to $27 million in 1998. The 1999 amount includes $11 million for Uniloy. Sales of both segments to non-U.S. markets, including exports, totaled $168 million in the first quarter of 1999, an increase of $12 million in relation to 1998. In 1999 and 1998, products manufactured outside the U.S. approximated 38% and 41% of sales, respectively, while products sold outside the U.S. approximated 43 % and 44 % of sales, respectively. MARGINS, COSTS AND EXPENSES AND OPERATING EARNINGS Our consolidated manufacturing margin in the first quarter of 1999 was 26.4% compared to 27.1% in 1998. In the plastics technologies segment, the overall margin approximated the results achieved in 1998, while the margin of the cutting process technologies segment decreased modestly. The decline resulted principally from lower margins for round metalcutting tools worldwide and metalworking fluids in Europe. In the first quarter of 1999, the plastics technologies segment had operating earnings of $20.1 million, or 9.3% of sales, compared to $16.2 million, or 9.0% of sales, in 1998. The acquisition of Uniloy contributed to the improvement. However, even without Uniloy, the segment's operating profit and return on sales would have shown improvement in 1999 in relation to 1998 due to higher earnings for U.S.-built extrusion systems and the non- U.S. injection molding machine business. The cutting process technologies segment had operating earnings of $16.1 million, or 9.2% of sales, in the first quarter of 1999, which represented a decrease of $2.5 million from $18.6 million, or 10.6% of sales, in 1998. The decrease resulted principally from softness in many of the segment's markets worldwide, especially those served by round metalcutting tools. The exception was the automotive sector, where demand remained strong. Total selling and administrative expense increased in amount in relation to 1998 due principally to the effect of the 1998 acquisitions. As a percentage of sales, these expenses remained constant at approximately 18%. Other expense-net, decreased to $2.5 million in the first quarter of 1999 from $4.2 million in 1998. The 1999 amount includes higher expense for goodwill amortization due principally to the Uniloy acquisition which occurred in the third quarter of 1998. The 1998 amount included severance expenses totaling approximately $2.0 million relating to approximately 60 employees at Widia, the company's European cutting tool business. As a result of these and other actions at Widia, we expect to achieve annualized pretax savings of approximately $5.0 million, which began to phase in during the fourth quarter of 1998. Interest expense-net, including amortization of debt issuance costs, increased in the first quarter of 1999 due primarily to higher average debt levels associated with the 1998 acquisitions and the repurchase of common shares. EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY SHAREHOLDERS' INTERESTS Earnings before income taxes and minority shareholders' interests were $21.5 million in the first quarter of 1999 compared to $20.9 million in 1998. The increase results principally from the effects of the 1998 acquisitions, which were partially offset by lower operating earnings for round cutting tools and injection molding machines and by higher interest expense. As a percentage of sales, pretax earnings decreased modestly from 5.9% to 5.5%. INCOME TAXES The 1999 and 1998 provisions for income taxes include U.S. federal and state and local income taxes as well as non-U.S. income taxes in jurisdictions outside the U.S. As discussed more fully in the notes to the consolidated condensed financial statements, Milacron entered both 1999 and 1998 with sizeable net operating loss (NOL) carryforwards in certain jurisdictions, along with valuation allowances against the NOL carryforwards and other deferred tax assets. Valuation allowances are evaluated periodically and revised based on a "more likely than not" assessment of whether the related deferred tax assets will be realized. Increases or decreases in these valuation allowances serve to unfavorably or favorably affect our effective tax rate. As a result of planned reductions in valuation allowances and certain other factors described below, Milacron's expected effective tax rate for 1999 is less than the U.S. statutory rate, as was also the case in 1998. In addition to the effects of reductions in valuation allowances, the 1999 effective tax rate includes adjustments of income tax reserves to more accurately reflect actual expected liabilities. These benefits are partially offset by the downward adjustment of the carrying value of net deferred tax assets in Germany to the lower "with distribution" rate. This change is being made as a result of recent changes in Milacron's capital structure in Europe. The effective tax rates for 1999 and 2000 are expected to be approximately 28-30%. However, the actual rates for both years will ultimately be contingent on the mix of earnings among tax jurisdictions and other factors that cannot be predicted with certainty at this time. EARNINGS FROM CONTINUING OPERATIONS Earnings from continuing operations, net of minority shareholders' interests, were $15.1 million, or $.40 per share (diluted), in the first quarter of 1999 compared with $15.0 million, or $.37 per share (diluted), in 1998. The modest increase in earnings resulted from higher pretax earnings offset by a slightly higher effective tax rate. The 8% increase in earnings per share reflects fewer common shares outstanding in 1999 as a result of the two million share repurchase program that began in the fourth quarter of 1998. The repurchase program was completed in 1999. DISCONTINUED OPERATIONS In 1998, discontinued operations reflects the operating results of the company's machine tools segment, which was sold on October 2, 1998. NET EARNINGS For the first quarter of 1999, net earnings were $15.1 million, or $.40 per share (diluted), compared to $17.6 million, or $.44 per share (diluted), for 1998. The most significant item affecting the net earnings comparison between years was the $2.6 million of earnings of the discontinued machine tools segment in 1998. YEAR 2000 - --------- The term "Year 2000 problem" (Y2K) refers to processing difficulties that may occur in information technology (I.T.) systems and other equipment with embedded microprocessors that were designed without considering the distinction between dates in the 1900s and the 2000s. If not corrected, these systems could fail or miscalculate data when processing information that includes a date on or after January 1, 2000. Each of Milacron's business units, as well as our corporate headquarters, is responsible for developing and executing comprehensive plans to minimize and, to the extent possible, eliminate any major business interruptions that could be caused by the Y2K issue. We have established an executive level Y2K Compliance Committee, which is monitoring our progress toward Y2K preparedness. This monitoring process includes testing by our internal auditors and considering reports from limited reviews conducted by outside consultants to identify issues requiring attention by the Compliance Committee. Milacron's Y2K effort focuses primarily on three important elements: 1) I.T. systems; 2) non-I.T. equipment that includes embedded microprocessors; and 3) supplier preparedness. Most of our efforts to date have focused on our most critical I.T. business systems (e.g., financial; enterprise resource planning, or "ERP"). Each of our ten major manufacturing locations operates a unique information technology system which has been selected to best serve that business's needs. Four of these businesses operate systems that are licensed from independent third-party software providers and require third party updates to be Y2K compliant. Milacron is cooperating with and relying on these third parties to replace or upgrade its software with Y2K compliant software on a timely basis. We are installing and testing the new software to provide assurance that the updated systems will properly process date-sensitive information. These systems have already been updated, except for one that is scheduled to be updated in the second quarter of 1999. Five other businesses are using the Y2K compliance process as an opportunity to modernize their systems by installing new ERP systems licensed from independent software providers. All of the ERP system installations were completed by January 11, 1999. Another business unit operates its own proprietary business systems, which are being reprogrammed to be Y2K compliant; over 95% of the applications have already been remediated with the balance expected to be remediated in the first half of 1999. In addition, Milacron is in the process of completing inventories, assessments and testing of non-I.T. systems (e.g., production equipment) which may contain embedded chips that could malfunction with the approach of the year 2000. Wherever critical systems are identified as not being compliant, Milacron plans to remediate or replace these non-compliant systems. The remediation phase of this effort is expected to be substantially completed by June 30, 1999. All business units are in the process of contacting key vendors and service providers to obtain information about their plans and progress on Y2K issues and to obtain their assurances that they expect to be able to provide an uninterrupted flow of product or service approaching and into the year 2000. We are following up on significant concerns that are identified as a result of these communications and, in some cases, may be arranging alternative sources of that product or service. In 1998, we focused on preventing significant Y2K failures, rather than preparing formal, written contingency plans. In the first quarter of 1999, many of our business units began working on contingency plans. These plans are expected to be substantially completed by the end of the third quarter of 1999. Many of the machinery products we sell rely on computer controls and embedded microprocessors to achieve optimum performance. We are making information available publicly to our customers on the Y2K status of these products. Substantially all of them are Y2K compliant. Milacron has estimated the cost of major system implementation and remediation efforts. However, other costs are being absorbed in departmental operating budgets. Based on currently available information, we estimate that the incremental cost of these major implementation and remediation projects will be approximately $14 million over 1997, 1998 and 1999, of which over 76% has been expended through March 31, 1999. These costs are not expected to have a material effect on Milacron's financial position, results of operations, or cash flows. Milacron recognizes that the Y2K issue could result in the interruption or failure of certain normal business operations which could materially and adversely affect our results of operations, liquidity and financial condition. We believe that the reasonable worst-case scenario is that Milacron could encounter production and shipment delays caused in large part by vendors, service providers and other third parties. Due to the general uncertainty inherent in the Y2K problem, resulting in part from the uncertainty of the Y2K preparedness of third parties, we are unable to determine at this time whether the consequences of the Y2K issue will have a material impact on Milacron's results of operations, liquidity or financial condition. However, as a result of our past and future Y2K activities, we believe that the risk of significant interruption of normal operations should be reduced. MARKET RISK - ----------- FOREIGN CURRENCY EXCHANGE RATE RISK Milacron uses foreign currency forward exchange contracts to hedge its exposure to adverse changes in foreign currency exchange rates related to firm commitments arising from international transactions. The company does not hold or issue derivative instruments for trading purposes. At March 31, 1999, Milacron had outstanding forward contracts totaling $14.9 million compared to $19.1 million at December 31, 1998, and $30.8 million at March 31, 1998. The potential loss from a hypothetical 10% adverse change in foreign currency rates on Milacron's foreign exchange contracts at March 31, 1999 or March 31, 1998, would not materially affect Milacron's consolidated financial position, results of operations, or cash flows. INTEREST RATE RISK At March 31, 1999, Milacron had fixed interest rate debt of $222 million, including $100 million of 7 7/8% Notes due May 15, 2000, and $115 million of 8 3/8% Notes due March 15, 2004. We also had floating rate debt totaling $319 million, with interest fluctuating based primarily on changes in LIBOR. At December 31, 1998 and March 31, 1998, fixed rate debt totaled $228 million and $218 million, respectively, and floating rate debt totaled $293 million and $174 million, respectively. We also sell up to $75 million of accounts receivable under our receivables purchase agreement, which results in financing fees that fluctuate based on changes in commercial paper rates. As a result, annual interest expense and financing fees fluctuate based on fluctuations in short-term borrowing rates. The effect of these fluctuations was not significant in the first quarter of 1999 or 1998. LIQUIDITY AND SOURCES OF CAPITAL - -------------------------------- At March 31, 1999, Milacron had cash and cash equivalents of $38 million, representing a decrease of $11 million during the first quarter of the year. Operating activities provided $2 million of cash in the first quarter of 1999, compared with $28 million provided in 1998. The decrease in cash provided resulted primarily from higher working capital requirements. These requirements were related to higher receivables levels, as well as higher inventory levels to support new product introductions and anticipated sales growth that did not materialize when expected. In 1999, investing activities resulted in a $22 million use of cash due to capital expenditures of $15 million and post-closing adjustments related to the 1998 acquisitions totaling $10 million. In 1998, investing activities used $23 million of cash, including capital expenditures of $12 million and the cost of two acquisitions totaling $13 million. Financing activities provided $9 million of cash in the first quarter of 1999, compared to $13 million in 1998. The 1999 amount includes a $31 million net increase in debt to finance acquisitions and to repurchase common shares (as described below). In 1998, incremental borrowings totaled $23 million while net repurchases of common shares used $5 million of cash. In the fourth quarter of 1998, we announced a two million common share repurchase program, of which 1.2 million shares were repurchased through December 31, 1998. The remainder of shares were repurchased in the first quarter of 1999. Including shares repurchased to meet the current needs of management incentive plans, Milacron used $18 million of cash for share repurchases in the first quarter of 1999. As of March 31, 1999 and December 31, 1998, Milacron's current ratio was 1.3, compared to 1.7 at March 31, 1998. The decrease in the current ratio was principally the result of higher bank borrowings to finance the 1998 acquisitions and the share repurchase program. As of March 31, 1999, Milacron had lines of credit with various U.S. and non-U.S. banks of approximately $629 million, including a $375 million committed revolving credit facility. Under the provisions of the facility, our additional borrowing capacity totaled approximately $224 million at March 31, 1999. Total debt was $541 million at March 31, 1999, representing an increase of $20 million from December 31, 1998. Total shareholders' equity was $461 million at March 31, 1999, a decrease of $16 million from December 31, 1998. The decrease resulted from $13 million of unfavorable foreign currency translation effects and the share repurchase program, which more than offset earnings net of dividends paid. The ratio of total debt to total capital (debt plus equity) was 54% at March 31, 1999, compared with 52% at December 31, 1998. We recently reduced the 1999 capital expenditures budget from an original amount of $80 million to a revised budget of $63 million. We made this reduction partly as a result of reduced capacity expansion needs in some businesses. We believe that Milacron's cash flow from operations and currently available credit lines are sufficient to meet our operating and capital requirements in 1999. OUTLOOK Industrial sectors remain soft in both North America and Europe. In the plastics technologies segment, we expect demand to improve during the rest of 1999 assuming the consumer economy remains strong. In the cutting process technologies segment, we believe industrial production is likely to remain slow in the second quarter and then pick up in the second half of the year. Under these conditions, we believe we can continue to grow Milacron's sales and earnings in 1999 and achieve our average annual targets of a 7% to 8% increase in sales and a 12% to 15% improvement in earnings per share. CAUTIONARY STATEMENT - ------------------- Milacron wishes to caution readers about all of the forward-looking statements in the "Outlook" section above and elsewhere. These include all statements that speak about the future or are based on our interpretation of factors that might affect our businesses. Milacron believes the following important factors, among others, could affect its actual results in 1999 and beyond and cause them to differ materially from those expressed in any of our forward-looking statements: * global and regional economic conditions, consumer spending and industrial production, particularly in segments related to the level of automotive production and spending in the construction industry; * fluctuations in currency exchange rates of U.S. and foreign countries, including countries in Europe and Asia where Milacron has several principal manufacturing facilities and where many of our competitors and suppliers are based; * fluctuations in domestic and non- U.S. interest rates which affect the cost of borrowing under Milacron's lines of credit and financing fees related to the sale of domestic accounts receivable; * production and pricing levels of important raw materials, including plastic resins, which are a key material used by purchasers of Milacron's plastics technologies products, and steel, cobalt, tungsten and industrial grains used in the production of metalworking products; * lower than anticipated levels of plant utilization resulting in production inefficiencies and higher costs, whether related to the delay of new product introductions, improved production processes or equipment, or labor relation issues; * any major disruption in production at key customer or supplier facilities; * alterations in trade conditions in and between the U.S. and non-U.S. countries where Milacron does business, including export duties, import controls, quotas and other trade barriers; * changes in tax, environmental and other laws and regulations in the U.S. and non-U.S. countries where Milacron does business; * unanticipated litigation, claims or assessments, including but not limited to claims or problems related to product liability, warranty, or environmental issues; * the failure of key vendors, software providers, public utilities, financial institutions or other critical suppliers to provide products or services that are Y2K compliant. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK The information required by Item 3 is included in Item 2 on page 19 of this Form 10-Q. PART II. OTHER INFORMATION MILACRON INC. AND SUBSIDIARIES ITEM 1. LEGAL PROCEEDINGS - -------------------------- In the opinion of management and counsel, there are no material pending legal proceedings to which the company or any of its subsidiaries is a party or of which any of its property is the subject. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K - ----------------------------------------- (a) Exhibits Exhibit (3) - Certificate of Incorporation and Bylaws Exhibit (4) - Instruments Defining the Rights of Security Holders, Including Indentures Exhibit (10) - Material Contracts Exhibit (11) - Statement Regarding Computation of Per Share Earnings - filed as a part of Part I Exhibit (27) - Financial Data Schedule - filed as part of Part I (b) Reports on Form 8-K -A current report on Form 8-K, Item 5, dated February 5, 1999 was filed regarding the approval by the Board of Directors of a stockholders rights plan. MILACRON INC. AND SUBSIDIARIES SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Milacron Inc. Date: May 13, 1999 By:/s/Jerome L. Fedders ------------------- ---------------------------------------- Jerome L. Fedders Controller Date: May 13, 1999 By:/s/Ronald D. Brown ------------------ ---------------------------------------- Ronald D. Brown Senior Vice President - Finance and Administration and Chief Financial Officer MILACRON INC. AND SUBSIDIARIES INDEX TO EXHIBITS EXHIBIT NO. PAGE NO. 2 Plan of Acquisition, Reorganization, Arrangement, Liquidation, or Succession - not applicable 3 Certificate of Incorporation and By-Laws 3.1 Restated Certificate of Incorporation filed with the Secretary of State of the State of Delaware on November 17, 1998 - Incorporated herein by reference to the company's Registration Statement on Form S-8 (Registration No. 333-70733) 3.4 By-laws, as amended - Incorporated herein by reference to the company's Registration Statement on Form S-8 (Registration No. 333-7733) 4 Instruments Defining the Rights of Security Holders, Including Indentures: 4.1 8-3/8% Notes due 2004 -Incorporated herein by reference to the company's Amendment No. 3 to Form S-4 Registration Statement dated July 7, 1994 (File No. 33-53009) 4.2 7-7/8% Notes due 2000 - Incorporated by reference to the company's Registration Statement on Form S-4 dated July 21, 1995 (File No. 33-60081) 4.3 Milacron Inc. hereby agrees to furnish to the Securities and Exchange Commission, upon its request, the instruments with respect to long-term debt for securities authorized thereunder which do not exceed 10% of the registrant's total consolidated assets 10 Material Contracts: 10.1 Milacron 1987 Long-Term Incentive Plan -Incorporated herein by reference to the company's Proxy Statement dated March 27, 1987. 10.2 Milacron 1991 Long-Term Incentive Plan -Incorporated herein by reference to the company's Proxy Statement dated March 22, 1991. 10.3 Milacron 1994 Long-Term Incentive Plan -Incorporated herein by reference to the company's Proxy Statement dated March 24, 1994. 10.4 Milacron 1997 Long-Term Incentive Plan, as amended -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 31, 1998. 10.5 Milacron 1996 Short-Term Management Incentive Plan -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 28, 1996. 10.6 Milacron Inc. Supplemental Pension Plan, as amended -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 31, 1998. 10.7 Milacron Inc. Supplemental Retirement Plan, as amended -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 31, 1998. 10.8 Milacron Inc. Plan for the Deferral of Directors' Compensation, as amended -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 31, 1998. 10.9 Milacron Inc. Retirement Plan for Non-Employee Directors, as amended -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 31, 1998. 10.10 Milacron Supplemental Executive Retirement Plan, as amended -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 31, 1998. 10.11 Amended and Restated Revolving Credit Agreement dated as of November 30, 1998 among Milacron Inc., Cincinnati Milacron Kunststoffmaschinen Europe GmbH, the lenders listed therein and Bankers Trust Company, as agent. -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 31, 1998. 10.12 Milacron Compensation Deferral Plan, as amended -Incorporated herein by reference to the company's Form 10-K for the fiscal year ended December 31, 1998. 10.13 Rights Agreement dated as of February 5, 1999, between Milacron, Inc. and Chase Mellon Shareholder Services, L.L.C., as Rights Agent. -Incorporated herein by reference to the company's Registration Statement on Form 8-A (File No. 001-08485). 10.14 Purchase and Sale Agreement between UNOVA, Inc., UNOVA Industrial Automation Systems, Inc., UNOVA U.K. Limited and Cincinnati Milacron, Inc. dated August 20, 1998. -Incorporated herein by reference to the company's Form 8-K dated December 30, 1995. 10.15 Purchase and Sale Agreement between Johnson Controls, Inc., Hoover Universal, Inc. and Cincinnati Milacron Inc., dated August 3, 1998. -Incorporated herein by reference to the company's Form 8-K dated September 30, 1998. 11 Statement Regarding Computation of Per-Share Earnings 27 15 Letter Regarding Unaudited Interim Financial Information - Not Applicable 18 Letter Regarding Change in Accounting Principles - Not Applicable 19 Report Furnished to Security Holders- Not Applicable 22 Published Report Regarding Matters Submitted to Vote of Security Holders - Not Applicable 23 Consent of Experts and Counsel - Not Applicable 24 Power of Attorney - Not Applicable 27 Financial Data Schedule 28 99 Additional Exhibits - Not Applicable EX-11 2 MILACRON INC. AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS (UNAUDITED)
(In thousands, except per-share amounts) Quarter Ended March 31, ---------------------- 1999 1998 -------- -------- Net earnings $ 15,075 $ 17,628 Less preferred dividends (60) (60) -------- -------- Net earnings available to common shareholders $ 15,015 $ 17,568 ======== ======== Basic Earnings Per Share: Weighted-average common shares outstanding 37,299 39,157 ======== ======== Per share amount $ .40 $ .45 ======== ======== Diluted Earnings Per Share: Weighted-average common shares outstanding 37,299 39,157 Dilutive effect of stock options and restricted shares based on the treasury stock method 201 551 -------- -------- Total 37,500 39,708 ======== ======== Per share amount $ .40 $ .44 ======== ========
Note: This computation is required by Regulation S-K, Item 601, and is filed as an exhibit under Item 6 of Form 10-Q. EX-27 3
5 1,000 3-MOS DEC-31-1999 JAN-01-1999 MAR-31-1999 37,600 0 242,000 12,600 404,800 717,600 596,500 250,500 1,526,100 545,900 0 0 6,000 365,400 89,700 1,526,100 392,000 392,000 288,400 288,400 73,000 0 9,200 21,400 6,300 15,100 0 0 0 15,100 .40 .40
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