Milacron reports increased sales in 2018
Canadian Plastics
Market Forecast Plastics ProcessesDespite the positive overall outcome for 2018, sales in the fourth quarter of the year were down, the machinery maker said, while orders also decreased.
Plastics processing equipment maker Milacron Holdings Corp. ended 2018 with sales of US$1,258.2 million, an increase of 1.9% from sales of US$1,234.2 million in 2017.
Despite the positive overall outcome for 2018, sales in the fourth quarter of the year were down 4.2% to US$311.4 million, the Cincinnati, Ohio-based company said in a statement, while orders also decreased 13.3% to US$274.2 million.
“Milacron delivered another solid year of results, meeting our sales targets and exceeding our target for free cash flow,” said Milacron president and CEO Tom Goeke. “We also capped off our multi-year restructuring initiative. Looking ahead to 2019, Milacron’s strategy remains unchanged and all of our platforms are well-positioned for growth and margin expansion. We are well-prepared for the challenges and opportunities in 2019.”
Milacron’s various business segments reflected the relatively flat results the company reported. Sales for Q4 2018 for the Melt Delivery & Control Systems were US$102.3 million compared to US$103.6 million in the same period a year ago. For the year ended Dec. 31, 2018, sales in this segment saw an increase to US$451.7 million compared to US$423.9 million in the same period a year ago.
The company’s Fluid Technologies segment saw sales increase slightly to US$31.1 million compared to US$31.0 million in the same period a year ago. Sales were up for the year ended Dec. 31, 2018, to US$129.3 million compared to US$121.2 million in the same period a year ago.
Sales decreased in the fourth quarter for the Advanced Plastic Processing Technologies (APPT) segment, meanwhile, with US$178.0 million compared to US$190.3 million in the same period a year ago. Sales in the APPT segment were US$677.2 million for the year ended Dec. 31, 2018, compared to US$689.1 million in the same period a year ago.
Looking ahead to the end of 2019, Milacron forecasts negative sales growth in the -3% to -4% range, which is inclusive of an anticipated 1% foreign currency headwind. Free cash flow is forecast to be between US$100 million and US$110 million.
