EX-99.1 2 a5537794ex991.txt EXHIBIT 99.1 Exhibit 99.1 Milacron Narrows Q3 Loss from Year Ago CINCINNATI--(BUSINESS WIRE)--Nov. 6, 2007--Milacron Inc. (NYSE: MZ), a leading global supplier of plastics-processing technologies and industrial fluids, today reported a net loss for the quarter ended September 30 of $4.5 million, or $1.36 per share, on sales of $204 million. This compared favorably to the company's net loss in the third quarter of 2006 of $7.2 million, or $1.97 per share, on sales of $209 million. Restructuring costs and other non-recurring costs totaled $1.7 million in the quarter, compared to $2.9 million in the year-ago quarter. Manufacturing margins in the third quarter improved to 19.7% from 18.7% a year ago, primarily as a result of continued cost-reduction and sourcing initiatives. New orders of $203 million were up slightly from $201 million in the third quarter of 2006 due to currency translation effects. Cash on hand at the end of the quarter exceeded $37 million, and Milacron had approximately $42 million available for borrowing under its asset-based revolving credit facility. The company's liquidity (cash plus borrowing availability) rose to $79 million from $65 million at the beginning of the quarter and $72 million at the end of the third quarter last year. "Our efforts to expand our presence in faster-growing, emerging markets continue to pay dividends," said Ronald D. Brown, chairman, president and chief executive officer. "Our orders from these markets are up 20% year to date. Our greatest current challenge, however, is the injection molding machine market in North America, which is down 17% year to date from 2006. This also negatively impacts our mold technologies business. As a result, we are stepping up our restructuring efforts to reduce our cost structure in this market." Segment Results Machinery Technologies-North America (machinery and related parts and services for injection molding, blow molding and extrusion supplied from North America, India and China) Sales in the quarter fell to $93 million from $106 million in the same period last year, as the ongoing consolidation of U.S. automotive molders curtailed demand from that sector and contributed to the glut of used equipment, depressing the market for new injection molding machines in North America. Sales of injection machines in India remained at record-high levels, and extrusion equipment sales continued to show solid increases. Blow molding machinery sales were down in the quarter but were running slightly ahead of last year on a year-to-date basis. Cost-containment measures helped minimize the impact of the overall volume drop, as segment earnings declined to $3.8 million from $6.0 million in the year-ago quarter. New orders in the quarter were $91 million, off from $106 million last year. Machinery Technologies-Europe (machinery and related parts and services for injection molding and blow molding supplied from Europe) Demand for injection molding machines continued to show growth in Western Europe, and, as a result, segment sales rose to $46 million from $40 million in 2006. Blow molding machine shipments were up slightly. Favorable currency translation effects accounted for about half of the segment sales gain. New orders were also $46 million compared to $31 million in the year-ago quarter, as currency accounted for about one-fifth of the increase. Higher volume and restructuring benefits aided the segment in posting a small operating profit of $0.9 million compared to an operating loss of $0.7 million in the year-ago quarter. Mold Technologies (mold bases and related parts and services, as well as maintenance, repair and operating supplies for injection molding worldwide) Softness in the injection molding-related markets in North America, particularly in the automotive sector, led to a slight sales decline in the third quarter to $37 million from $38 million a year ago. In Europe, our mold technologies sales were essentially flat in local currencies. During the quarter this segment accelerated its restructuring activities as it incurred a small loss of $0.4 million compared to breaking even in the year-ago quarter. Industrial Fluids (water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide) Sales of $31 million were up from $29 million in the third quarter of 2006, with currency translation effects accounting for most of the increase. With better pricing and improved operating efficiency, segment earnings jumped to $3.5 million from $1.9 million a year ago. Outlook "The ongoing consolidation among U.S. auto part suppliers and the depressed housing markets are major uncertainties affecting our North American injection machinery and mold technologies businesses," Brown said. "For our part, we will continue to focus on further expansion in faster-growing markets and on cost reductions in markets where growth has slowed, and we expect to show progressive improvement in our underlying operating results in the fourth quarter. "Looking at 2008 and the longer term, while it's premature to offer specific guidance, we will be taking further actions to accelerate our return to profitability," he said. The forward-looking statements above by their nature involve risks and uncertainties that could significantly impact operations, markets, products and expected results. For further information please refer to the Cautionary Statement included in the company's most recent Form 10-Q on file with the Securities and Exchange Commission. Investor Conference Call Today at 1:00 p.m. ET, 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 913-312-6689 or 888-228-5287. A recording of the conference call will be available from 4:00 p.m. today through midnight November 20 on Milacron's website or by phone: (719) 457-0820 or (888) 203-1112 and providing the access code: 9397416. First incorporated in 1884, Milacron is a leading global supplier of plastics-processing technologies and industrial fluids, with major manufacturing facilities in North America, Europe and Asia. For further information, visit www.milacron.com or call Milacron's toll-free investor line: (800) 909-6452. Tables Attached Milacron Inc. and Subsidiaries Third Quarter 2007 ---------------------------------------------------------------------- Three Months Ended Nine Months Ended September 30, September 30, --------------------------- --------------------------- 2007 2006 2007 2006 ---------------------------------------------------------------------- Sales $203,689,000 $209,125,000 $591,286,000 $622,644,000 Loss from continuing operations (4,462,000) (7,186,000) (15,514,000) (31,092,000) Per Share Basic (1.36) (1.97) (4.56) (7.90) Diluted (1.36) (1.97) (4.56) (7.90) Earnings from discontinued operations - - 135,000 17,000 Per Share Basic - - 0.03 - Diluted - - 0.03 - Net loss (4,462,000) (7,186,000) (15,379,000) (31,075,000) Per Share Basic (1.36) (1.97) (4.53) (7.90) Diluted (1.36) (1.97) (4.53) (7.90) Common shares Weighted average outstanding for basic EPS 5,002,000 4,842,000 4,943,000 4,822,000 Weighted average outstanding for diluted EPS 5,002,000 4,842,000 4,943,000 4,822,000 Outstanding at quarter end 5,538,000 5,165,000 5,538,000 5,165,000 ---------------------------------------------------------------------- Notes: These statements are unaudited and subject to year-end adjustments. The common share amounts, including the weighted average outstanding shares upon which per-share amounts are based, include the effect for the one-for-ten reverse stock split that became effective on May 16, 2007. Per-share amounts include accruals for preferred dividends and the effect of a beneficial conversion feature. Consolidated Earnings Milacron Inc. and Subsidiaries Third Quarter 2007 ---------------------------------------------------------------------- (In millions, except per-share Three Months Ended Nine Months Ended data) September 30, September 30, ------------------ ----------------- 2007 2006 2007 2006 ---------------------------------------------------------------------- Sales $ 203.7 $ 209.1 $591.3 $ 622.6 Cost of products sold 163.5 169.8 476.9 509.0 Cost of products sold related to restructuring - 0.1 - 0.5 -------- -------- ------- --------- Total cost of products sold 163.5 169.9 476.9 509.5 -------- -------- ------- --------- Manufacturing margins 40.2 39.2 114.4 113.1 Percent of sales 19.7% 18.7% 19.3% 18.2% Other costs and expenses Selling and administrative 35.1 35.3 105.3 107.8 Restructuring costs 1.2 2.8 5.1 11.8 Change in preferred stock ownership costs 0.5 - 0.5 - Other income - net 0.4 0.6 (0.1) (0.4) -------- -------- ------- --------- Total other costs and expenses 37.2 38.7 110.8 119.2 -------- -------- ------- --------- Operating earnings (loss) 3.0 0.5 3.6 (6.1) Interest expense - net (8.0) (6.8) (23.6) (22.3) -------- -------- ------- --------- Loss from continuing operations before income taxes (5.0) (6.3) (20.0) (28.4) Provision (benefit) for income taxes (0.5) 0.9 (4.4) 2.7 -------- -------- ------- --------- Loss from continuing operations (4.5) (7.2) (15.6) (31.1) Discontinued operations - net of income taxes (a) - - 0.2 - -------- -------- ------- --------- Net loss $ (4.5) $ (7.2) $(15.4) $ (31.1) ======== ======== ======= ========= Loss per common share - basic and diluted Continuing operations $ (1.36) $ (1.97) $(4.56) $ (7.90) Discontinued operations - - 0.03 - -------- -------- ------- --------- Net loss $ (1.36) $ (1.97) $(4.53) $ (7.90) ======== ======== ======= ========= (a) In 2007, represents adjustments of reserves related to prior divestitures. ---------------------------------------------------------------------- Notes: These statements are unaudited and subject to year-end adjustments. The weighted average outstanding shares upon which per-share amounts are based include the effect for the one-for-ten reverse stock split that became effective on May 16, 2007. Per-share amounts include accruals for preferred dividends and effect of beneficial conversion feature. Consolidated Balance Sheets Milacron Inc. and Subsidiaries Third Quarter 2007 ---------------------------------------------------------------------- (In millions) September 30, September 30, 2007 2006 ---------------------------------------------------------------------- Assets Cash and cash equivalents $ 37.5 $ 35.7 Notes and accounts receivable-net 122.5 118.2 Inventories 184.5 178.5 Other current assets 47.3 42.0 ------------- ------------- Total current assets 391.8 374.4 Property, plant and equipment - net 112.1 114.0 Goodwill 90.7 86.1 Other noncurrent assets 85.3 87.6 ------------- ------------- Total assets $ 679.9 $ 662.1 ============= ============= Liabilities and shareholders' deficit Short-term borrowings and long-term debt due within one year (a) $ 31.4 $ 22.4 Trade accounts payable and advance billings and deposits 117.1 99.9 Accrued and other current liabilities 85.4 88.4 ------------- ------------- Total current liabilities 233.9 210.7 Long-term accrued liabilities 231.1 241.1 Long-term debt 232.5 232.2 Shareholders' deficit (17.6) (21.9) ------------- ------------- Total liabilities and shareholders' deficit $ 679.9 $ 662.1 ============= ============= (a) In 2007, $23.0 million was drawn against the revolving credit facility and in 2006, $17.4 million was drawn against the revolving credit facility. Outstanding letters of credit were $7.0 million in 2007 and $8.1 million in 2006. Note: These statements are unaudited and subject to year-end adjustments. Consolidated Cash Flows Milacron Inc. and Subsidiaries Third Quarter 2007 ---------------------------------------------------------------------- (In millions) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2007 2006 2007 2006 ---------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents Operating activities cash flows Net loss $ (4.5) $ (7.2) $ (15.4) $ (31.1) Discontinued operations - net of income taxes - - (0.2) - Depreciation and amortization 3.9 4.2 12.0 12.5 Restructuring costs 0.8 1.2 1.3 4.9 Working capital changes Notes and accounts receivable (4.3) 1.8 (4.4) 2.4 Inventories (7.7) (1.9) (10.2) (14.5) Other current assets 0.8 1.3 (4.6) 3.0 Trade accounts payable 8.7 (6.7) 9.0 (1.2) Other current liabilities 7.3 10.9 2.9 8.6 Deferred income taxes and other - net 5.6 (18.3) 9.6 (3.0) -------- --------- -------- -------- Net cash provided (used) by operating activities 10.6 (14.7) - (18.4) Investing activities cash flows Capital expenditures (2.3) (2.7) (6.0) (10.3) Net disposals of property, plant and equipment - 2.1 0.2 2.1 -------- --------- -------- -------- Net cash used by investing activities (2.3) (0.6) (5.8) (8.2) Financing activities cash flows Repayments of long-term debt (0.2) (0.4) (0.6) (1.4) Increase (decrease) in short- term borrowings (3.3) 9.4 3.3 15.5 Dividends paid (0.1) - (0.2) (0.1) -------- --------- -------- -------- Net cash provided (used) by financing activities (3.6) 9.0 2.5 14.0 Effect of exchange rate fluctuations on cash and cash equivalents 1.5 0.1 2.3 2.6 -------- --------- -------- -------- Increase (decrease) in cash and cash equivalents 6.2 (6.2) (1.0) (10.0) Cash and cash equivalents at beginning of period 31.3 41.9 38.5 45.7 -------- --------- -------- -------- Cash and cash equivalents at end of period $ 37.5 $ 35.7 $ 37.5 $ 35.7 ======== ========= ======== ======== ---------------------------------------------------------------------- Note: These statements are unaudited and subject to year-end adjustments. Segment and Supplemental Information Milacron Inc. and Subsidiaries Third Quarter 2007 ---------------------------------------------------------------------- (In millions) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------------------------------------- Machinery technologies North America Sales $ 92.9 $ 105.7 $ 275.5 $ 306.7 Operating cash flow (a) 5.1 7.5 15.0 16.4 Segment earnings 3.8 6.0 10.5 11.9 Percent of sales 4.1% 5.7% 3.8% 3.9% New orders 91.4 105.7 279.4 312.2 Machinery technologies Europe Sales $ 45.5 $ 39.8 $ 120.1 $ 116.0 Operating cash flow (a) 1.8 0.3 2.8 (1.5) Segment earnings (loss) 0.9 (0.7) - (4.2) Percent of sales 2.0% -1.8% 0.0% -3.6% New orders 46.3 30.9 138.0 113.8 Mold technologies Sales $ 36.9 $ 37.7 $ 110.6 $ 121.1 Operating cash flow (a) 0.8 1.3 2.5 6.2 Segment earnings (loss) (0.4) - (0.9) 2.1 Percent of sales -1.1% 0.0% -0.8% 1.7% New orders 37.4 37.7 110.6 119.9 Eliminations Sales $ (2.4) $ (3.2) $ (7.6) $ (9.3) New orders (3.4) (2.7) (8.3) (8.2) Total plastics technologies Sales $ 172.9 $ 180.0 $ 498.6 $ 534.5 Operating cash flow (a) 7.7 9.1 20.3 21.1 Segment earnings 4.3 5.3 9.6 9.8 Percent of sales 2.5% 2.9% 1.9% 1.8% New orders 171.7 171.6 519.7 537.7 Industrial fluids Sales $ 30.8 $ 29.1 $ 92.7 $ 88.1 Operating cash flow (a) 4.0 2.2 11.2 7.8 Segment earnings 3.5 1.9 10.0 6.7 Percent of sales 11.4% 6.5% 10.8% 7.6% New orders 30.8 29.1 92.7 88.1 Total continuing operations Sales $ 203.7 $ 209.1 $ 591.3 $ 622.6 Operating cash flow (a) 8.6 7.6 21.2 18.7 Segment earnings 7.8 7.2 19.6 16.5 Restructuring costs (1.2) (2.9) (5.1) (12.3) Change in preferred stock ownership costs (0.5) - (0.5) - Corporate expenses (3.0) (3.6) (10.1) (10.0) Other unallocated expenses (0.1) (0.2) (0.3) (0.3) -------- --------- -------- --------- Operating earnings (loss) 3.0 0.5 3.6 (6.1) Percent of sales 1.5% 0.2% 0.6% -1.0% New orders 202.5 200.7 612.4 625.8 Ending backlog 131.2 98.5 131.2 98.5 (a) Represents EBITDA (earnings before interest, income taxes, depreciation and amortization) before restructuring costs. ---------------------------------------------------------------------- Note: These statements are unaudited and subject to year-end adjustments. Reconciliation of Earnings to Operating Cash Flows Milacron Inc. and Subsidiaries Third Quarter 2007 ---------------------------------------------------------------------- (In millions) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2007 2006 2007 2006 ---------------------------------------------------------------------- Machinery technologies North America Segment earnings $ 3.8 $ 6.0 $ 10.5 $ 11.9 Depreciation and amortization 1.3 1.5 4.5 4.5 -------- --------- -------- -------- Operating cash flow 5.1 7.5 15.0 16.4 Machinery technologies Europe Segment earnings (loss) $ 0.9 $ (0.7) $ - $ (4.2) Depreciation and amortization 0.9 1.0 2.8 2.7 -------- --------- -------- -------- Operating cash flow 1.8 0.3 2.8 (1.5) Mold technologies Segment earnings (loss) $ (0.4) $ - $ (0.9) $ 2.1 Depreciation and amortization 1.2 1.3 3.4 4.1 -------- --------- -------- -------- Operating cash flow 0.8 1.3 2.5 6.2 Total plastics technologies Segment earnings $ 4.3 $ 5.3 $ 9.6 $ 9.8 Depreciation and amortization 3.4 3.8 10.7 11.3 -------- --------- -------- -------- Operating cash flow 7.7 9.1 20.3 21.1 Industrial fluids Segment earnings $ 3.5 $ 1.9 $ 10.0 $ 6.7 Depreciation and amortization 0.5 0.3 1.2 1.1 -------- --------- -------- -------- Operating cash flow 4.0 2.2 11.2 7.8 Total continuing operations Net loss $ (4.5) $ (7.2) $ (15.4) $ (31.1) Discontinued operations - net of income taxes (a) - - (0.2) - Provision (benefit) for income taxes (0.5) 0.9 (4.4) 2.7 Interest expense - net 8.0 6.8 23.6 22.3 Restructuring costs 1.2 2.9 5.1 12.3 Change in preferred stock ownership costs 0.5 - 0.5 - Depreciation and amortization 3.9 4.2 12.0 12.5 -------- --------- -------- -------- Operating cash flow $ 8.6 $ 7.6 $ 21.2 $ 18.7 ======== ========= ======== ======== (a) In 2007, represents adjustments of reserves related to prior divestitures. ---------------------------------------------------------------------- Note: These statements are unaudited and subject to year-end adjustments. Historical Information ---------------------------------------------------------------------- (In millions, except per-share data) 2005 --------------------------------------- Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year ---------------------------------------------------------------------- Sales $192.3 $208.8 $190.7 $217.1 $808.9 Cost of products sold 160.1 171.0 157.3 174.7 663.1 Cost of products sold related to restructuring - - - - - ------- ------- ------- ------- ------- Total cost of products sold 160.1 171.0 157.3 174.7 663.1 ------- ------- ------- ------- ------- Manufacturing margins 32.2 37.8 33.4 42.4 145.8 Other costs and expenses Selling and administrative 33.5 33.7 31.3 35.3 133.8 Refinancing costs (a) - - - - - Restructuring costs (b) 0.4 0.3 0.1 0.8 1.6 Change in preferred stock ownership costs - - - - - Other - net (1.0) 0.2 1.3 (0.1) 0.4 ------- ------- ------- ------- ------- Total other costs and expenses 32.9 34.2 32.7 36.0 135.8 ------- ------- ------- ------- ------- Operating earnings (loss) (0.7) 3.6 0.7 6.4 10.0 Interest expense - net (8.2) (7.0) (7.7) (7.4) (30.3) ------- ------- ------- ------- ------- Loss from continuing operations before income taxes (8.9) (3.4) (7.0) (1.0) (20.3) Provision (benefit) from income taxes 0.2 1.0 0.6 (5.6) (3.8) ------- ------- ------- ------- ------- Earnings (loss) from continuing operations (9.1) (4.4) (7.6) 4.6 (16.5) Discontinued operations - net of income taxes (c) Net gain (loss) 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) $ 5.8 $(14.0) ======= ======= ======= ======= ======= Earnings (loss) per common share Basic Continuing operations $(2.24) $(1.24) $(1.92) $ 0.62 $(4.77) Discontinued operations - 0.12 0.15 0.26 0.53 ------- ------- ------- ------- ------- Net earnings (loss) $(2.24) $(1.12) $(1.77) $ 0.88 $(4.24) ======= ======= ======= ======= ======= Diluted Continuing operations $(2.24) $(1.24) $(1.92) $ 0.42 $(4.77) Discontinued operations - 0.12 0.15 0.12 0.53 ------- ------- ------- ------- ------- Net earnings (loss) $(2.24) $(1.12) $(1.77) $ 0.54 $(4.24) ======= ======= ======= ======= ======= 2006 ---------------------------------------- Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year ---------------------------------------------------------------------- Sales $202.4 $211.1 $209.1 $197.5 $ 820.1 Cost of products sold 168.8 170.4 169.8 159.2 668.2 Cost of products sold related to restructuring - 0.4 0.1 - 0.5 ------- ------- ------- ------- -------- Total cost of products sold 168.8 170.8 169.9 159.2 668.7 ------- ------- ------- ------- -------- Manufacturing margins 33.6 40.3 39.2 38.3 151.4 Other costs and expenses Selling and administrative 34.2 38.3 35.3 32.4 140.2 Refinancing costs (a) - - - 1.8 1.8 Restructuring costs (b) 0.6 8.4 2.8 5.1 16.9 Change in preferred stock ownership costs - - - - - Other - net (0.1) (0.9) 0.6 0.1 (0.3) ------- ------- ------- ------- -------- Total other costs and expenses 34.7 45.8 38.7 39.4 158.6 ------- ------- ------- ------- -------- Operating earnings (loss) (1.1) (5.5) 0.5 (1.1) (7.2) Interest expense - net (7.6) (7.9) (6.8) (7.7) (30.0) ------- ------- ------- ------- -------- Loss from continuing operations before income taxes (8.7) (13.4) (6.3) (8.8) (37.2) Provision (benefit) from income taxes 0.9 0.9 0.9 (0.1) 2.6 ------- ------- ------- ------- -------- Earnings (loss) from continuing operations (9.6) (14.3) (7.2) (8.7) (39.8) Discontinued operations - net of income taxes (c) Net gain (loss) on divestitures - - - 0.1 0.1 ------- ------- ------- ------- -------- Total discontinued operations - - - 0.1 0.1 ------- ------- ------- ------- -------- Net earnings (loss) $ (9.6) $(14.3) $ (7.2) $ (8.6) $ (39.7) ======= ======= ======= ======= ======== Earnings (loss) per common share Basic Continuing operations $(2.49) $(3.45) $(1.97) $(2.27) $(10.17) Discontinued operations - - - 0.02 0.02 ------- ------- ------- ------- -------- Net earnings (loss) $(2.49) $(3.45) $(1.97) $(2.25) $(10.15) ======= ======= ======= ======= ======== Diluted Continuing operations $(2.49) $(3.45) $(1.97) $(2.27) $(10.17) Discontinued operations - - - 0.02 0.02 ------- ------- ------- ------- -------- Net earnings (loss) $(2.49) $(3.45) $(1.97) $(2.25) $(10.15) ======= ======= ======= ======= ======== 2007 ------------------------------- Qtr 1 Qtr 2 Qtr 3 Year ---------------------------------------------------------------------- Sales $190.3 $197.3 $203.7 $591.3 Cost of products sold 154.8 158.6 163.5 476.9 Cost of products sold related to restructuring - - - - ------- ------- ------- ------- Total cost of products sold 154.8 158.6 163.5 476.9 ------- ------- ------- ------- Manufacturing margins 35.5 38.7 40.2 114.4 Other costs and expenses Selling and administrative 35.3 34.9 35.1 105.3 Refinancing costs (a) - - - - Restructuring costs (b) 2.4 1.5 1.2 5.1 Change in preferred stock ownership costs - - 0.5 0.5 Other - net (0.2) (0.3) 0.4 (0.1) ------- ------- ------- ------- Total other costs and expenses 37.5 36.1 37.2 110.8 ------- ------- ------- ------- Operating earnings (loss) (2.0) 2.6 3.0 3.6 Interest expense - net (7.7) (7.9) (8.0) (23.6) ------- ------- ------- ------- Loss from continuing operations before income taxes (9.7) (5.3) (5.0) (20.0) Provision (benefit) from income taxes 1.0 (4.9) (0.5) (4.4) ------- ------- ------- ------- Earnings (loss) from continuing operations (10.7) (0.4) (4.5) (15.6) Discontinued operations - net of income taxes (c) Net gain (loss) on divestitures (0.1) 0.3 - 0.2 ------- ------- ------- ------- Total discontinued operations (0.1) 0.3 - 0.2 ------- ------- ------- ------- Net earnings (loss) $(10.8) $ (0.1) $ (4.5) $(15.4) ======= ======= ======= ======= Earnings (loss) per common share Basic Continuing operations $(2.66) $(0.55) $(1.36) $(4.56) Discontinued operations (0.02) 0.05 - 0.03 ------- ------- ------- ------- Net earnings (loss) $(2.68) $(0.50) $(1.36) $(4.53) ======= ======= ======= ======= Diluted Continuing operations $(2.66) $(0.55) $(1.36) $(4.56) Discontinued operations (0.02) 0.05 - 0.03 ------- ------- ------- ------- Net earnings (loss) $(2.68) $(0.50) $(1.36) $(4.53) ======= ======= ======= ======= (a) In 2006, represents the write-off of unamortized deferred refinancing fees. (b) In 2006 and 2007, relates principally to costs for the consolidation of the global mold technologies and European plastics machinery businesses to reduce their cost structures and improve customer service. In 2005, represents costs related to initiatives to reduce operating and administrative costs. (c) All years, represents adjustments of reserves related to prior divestitures. ---------------------------------------------------------------------- Notes: These statements are unaudited and subject to year-end adjustments. The weighted average outstanding shares upon which per-share amounts are based include the effect for the one-for-ten reverse stock split that became effective on May 16, 2007. Per-share amounts include accruals for preferred dividends and effect of beneficial conversion feature. Historical Segment and Supplemental Information ---------------------------------------------------------------------- (In Millions) 2005 --------------------------------------- Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year ---------------------------------------------------------------------- Machinery technologies North America Sales $ 87.1 $ 95.4 $ 86.7 $107.3 $376.5 Operating cash flow (a) 3.5 6.5 5.8 7.8 23.6 Segment earnings 1.9 4.9 4.3 6.2 17.3 New orders 94.9 100.7 89.2 97.9 382.7 Machinery technologies Europe Sales $ 34.3 $ 41.5 $ 36.8 $ 36.9 $149.5 Operating cash flow (a) (1.2) 0.6 (0.5) 0.4 (0.7) Segment earnings (loss) (2.2) (0.5) (1.5) (0.8) (5.0) New orders 35.4 42.7 34.2 40.3 152.6 Mold technologies Sales $ 44.2 $ 44.4 $ 40.6 $ 44.2 $173.4 Operating cash flow (a) 3.7 2.1 0.7 3.4 9.9 Segment earnings (loss) 2.3 0.7 (0.7) 1.6 3.9 New orders 45.1 43.4 40.7 44.5 173.7 Eliminations Sales $ (0.3) $ (0.6) $ (0.5) $ (1.3) $ (2.7) New orders (0.4) (0.5) (0.4) (1.0) (2.3) Total plastics technologies Sales $165.3 $180.7 $163.6 $187.1 $696.7 Operating cash flow (a) 6.0 9.2 6.0 11.6 32.8 Segment earnings 2.0 5.1 2.1 7.0 16.2 New orders 175.0 186.3 163.7 181.7 706.7 Industrial fluids Sales $ 27.0 $ 28.1 $ 27.1 $ 30.0 $112.2 Operating cash flow (a) 1.9 2.4 2.2 3.9 10.4 Segment earnings 1.4 1.9 1.8 3.6 8.7 New orders 27.0 28.2 27.1 29.8 112.1 Total continuing operations Sales $192.3 $208.8 $190.7 $217.1 $808.9 Operating cash flow (a) 4.2 8.5 5.2 12.1 30.0 Segment earnings 3.4 7.0 3.9 10.6 24.9 Restructuring costs (b) (0.4) (0.3) (0.1) (0.8) (1.6) Change in preferred stock ownership costs - - - - - Corporate expenses (3.5) (3.0) (3.0) (3.3) (12.8) Other unallocated expenses (c) (0.2) (0.1) (0.1) (0.1) (0.5) ------- ------- ------- ------- ------- Operating earnings (loss) (0.7) 3.6 0.7 6.4 10.0 Percent of sales -0.4% 1.7% 0.4% 2.9% 1.2% New orders 202.0 214.5 190.8 211.5 818.8 Ending backlog 96.0 99.2 99.6 92.7 92.7 2006 --------------------------------------- Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year ---------------------------------------------------------------------- Machinery technologies North America Sales $ 94.1 $106.9 $105.7 $ 95.7 $402.4 Operating cash flow (a) 2.9 6.0 7.5 6.8 23.2 Segment earnings 1.4 4.5 6.0 5.2 17.1 New orders 114.0 92.5 105.7 98.8 411.0 Machinery technologies Europe Sales $ 36.3 $ 39.9 $ 39.8 $ 37.4 $153.4 Operating cash flow (a) (1.6) (0.2) 0.3 0.4 (1.1) Segment earnings (loss) (2.4) (1.2) (0.7) (0.6) (4.9) New orders 40.0 42.9 30.9 40.3 154.1 Mold technologies Sales $ 44.4 $ 38.9 $ 37.7 $ 37.8 $158.8 Operating cash flow (a) 3.3 1.6 1.3 2.0 8.2 Segment earnings (loss) 1.9 0.3 - 0.8 3.0 New orders 43.7 38.5 37.7 37.9 157.8 Eliminations Sales $ (2.1) $ (3.9) $ (3.2) $ (2.8) $(12.0) New orders (2.3) (3.2) (2.7) (3.4) (11.6) Total plastics technologies Sales $172.7 $181.8 $180.0 $168.1 $702.6 Operating cash flow (a) 4.6 7.4 9.1 9.2 30.3 Segment earnings 0.9 3.6 5.3 5.4 15.2 New orders 195.4 170.7 171.6 173.6 711.3 Industrial fluids Sales $ 29.7 $ 29.3 $ 29.1 $ 29.4 $117.5 Operating cash flow (a) 2.3 3.3 2.2 4.5 12.3 Segment earnings 1.9 2.9 1.9 4.1 10.8 New orders 29.7 29.3 29.1 29.4 117.5 Total continuing operations Sales $202.4 $211.1 $209.1 $197.5 $820.1 Operating cash flow (a) 3.6 7.5 7.6 10.1 28.8 Segment earnings 2.8 6.5 7.2 9.5 26.0 Restructuring costs (b) (0.6) (8.8) (2.9) (5.1) (17.4) Change in preferred stock ownership costs - - - - - Corporate expenses (3.3) (3.1) (3.6) (3.6) (13.6) Other unallocated expenses (c) - (0.1) (0.2) (1.9) (2.2) ------- ------- ------- ------- ------- Operating earnings (loss) (1.1) (5.5) 0.5 (1.1) (7.2) Percent of sales -0.5% -2.6% 0.2% -0.6% -0.9% New orders 225.1 200.0 200.7 203.0 828.8 Ending backlog 116.2 106.8 98.5 105.7 105.7 2007 ------------------------------ Qtr 1 Qtr 2 Qtr 3 Year ---------------------------------------------------------------------- Machinery technologies North America Sales $ 91.1 $ 91.5 $ 92.9 $275.5 Operating cash flow (a) 3.4 6.5 5.1 15.0 Segment earnings 1.8 4.9 3.8 10.5 New orders 97.9 90.1 91.4 279.4 Machinery technologies Europe Sales $ 34.4 $ 40.2 $ 45.5 $120.1 Operating cash flow (a) (0.2) 1.2 1.8 2.8 Segment earnings (loss) (1.2) 0.3 0.9 - New orders 46.6 45.1 46.3 138.0 Mold technologies Sales $ 37.9 $ 35.8 $ 36.9 $110.6 Operating cash flow (a) 1.4 0.3 0.8 2.5 Segment earnings (loss) 0.3 (0.8) (0.4) (0.9) New orders 36.7 36.5 37.4 110.6 Eliminations Sales $ (2.8) $ (2.4)$ (2.4) $ (7.6) New orders (2.8) (2.1) (3.4) (8.3) Total plastics technologies Sales $160.6 $165.1 $172.9 $498.6 Operating cash flow (a) 4.6 8.0 7.7 20.3 Segment earnings 0.9 4.4 4.3 9.6 New orders 178.4 169.6 171.7 519.7 Industrial fluids Sales $ 29.7 $ 32.2 $ 30.8 $ 92.7 Operating cash flow (a) 3.6 3.6 4.0 11.2 Segment earnings 3.3 3.2 3.5 10.0 New orders 29.7 32.2 30.8 92.7 Total continuing operations Sales $190.3 $197.3 $203.7 $591.3 Operating cash flow (a) 4.4 8.2 8.6 21.2 Segment earnings 4.2 7.6 7.8 19.6 Restructuring costs (b) (2.4) (1.5) (1.2) (5.1) Change in preferred stock ownership costs - - (0.5) (0.5) Corporate expenses (3.7) (3.4) (3.0) (10.1) Other unallocated expenses (c) (0.1) (0.1) (0.1) (0.3) ------- -------------- ------- Operating earnings (loss) (2.0) 2.6 3.0 3.6 Percent of sales -1.1% 1.3% 1.5% 0.6% New orders 208.1 201.8 202.5 612.4 Ending backlog 126.6 132.1 131.2 131.2 (a) Represents EBITDA (earnings before interest, income taxes, depreciation and amortization) before restructuring costs. (b) In 2006 and 2007, relates principally to costs for the consolidation of the global mold technologies and European plastics machinery businesses to reduce their cost structures and improve customer service. In 2005, represents costs related to initiatives to reduce operating and administrative costs. (c) In fourth quarter 2006, includes $1.7 million for writing-off unamortized deferred refinancing fees. ---------------------------------------------------------------------- Note: These statements are unaudited and subject to year-end adjustments. Updated: November 6, 2007 Note: The amounts below are approximate working estimates, around which an even wider range of numbers could be used for financial modeling purposes. These estimates, by their nature, involve a great number of risks and uncertainties. Actual results may differ as these risks and uncertainties could significantly impact the company's markets, products, and operations. For further information please refer to the Cautionary Statement included in Item 2 of the company's most recent Form 10-Q on file with the Securities and Exchange Commission. ---------------------------------------------------------------------- Quarter Ended Year Ended -------------------- -------------------- (In millions) December 31, 2007 December 31, 2007 ---------------------------------------------------------------------- Projected profit & loss items Sales (1) $ 216 - 229 $ 807 - 820 Total plastics technologies 184 - 194 683 - 693 Industrial fluids 32 - 35 125 - 128 Segment earnings Total plastics technologies 4 - 6 14 - 16 Industrial fluids 3 - 5 13 - 15 Corporate expenses 3 - 4 13 - 14 Interest expense - net 7 - 8 31 - 32 Provision for (benefit from) income taxes (2) 64 - 65 60 - 61 Restructuring costs 1 5 - 6 Change in preferred stock ownership costs 1 - 2 2 - 3 Net earnings (loss) after tax (3) (73) - (64) (89) - (80) Average shares outstanding - basic 5 5 Average shares outstanding - diluted 11 11 Earnings per share (4) ($14.85) - ($13.08) ($19.63) - ($17.83) Projected cash flow & balance sheet items Depreciation and amortization 3 - 4 15 - 16 Primary working capital - decrease (5) 6 - 10 4 - 8 Cash pension contribution 0 0 Capital expenditures, net 4 - 5 9 - 10 Cash interest 13 - 14 28 - 29 Cash dividends less than 1 less than 1 Cash tax less than 1 2 - 3 Cash refinancing fees 0 1 Cash restructuring 1 - 2 7 - 8 1 Quarter ended December 31, 2007 and year ended December 31, 2007 increased approximately $10 million and $26 million, respectively, over the same periods a year ago due to the strengthening of the Euro. 2 Includes $63.0 million non-cash charge to U.S. tax provision related to "change in preferred stock ownership" triggered by October 2, 2007 sale of Glencore Finance AG Series B Preferred Stock. See company news release of October 3, 2007. 3 Includes $2.8 million and $11.3 million of non-cash expense related to the U.S defined benefit plan in quarter ended December 31, 2007 and year ended December 31, 2007, respectively. 4 Per share amounts include accruals for preferred dividends and effect of beneficial conversion feature. 5 Inventory + receivables - trade payables - advance billings Comments & explanations Assumes quarter ended September 30, 2007 foreign exchange rates (e.g., USD/EUR = 1.4136), and no further acquisitions or divestitures. CONTACT: Milacron Inc. Al Beaupre, 513-487-5918 albert.beaupre@milacron.com