Milacron’s sales down in Q3 2019
Canadian PlasticsMarket Forecast Plastics Processes
The results come as the company prepares for its acquisition by industrial equipment maker Hillenbrand Inc.
Just a week out from a late-November stockholder meeting to approve its sale to Hillenbrand Inc., U.S.-based processing machinery maker Milacron Holdings Corp. has reported a decrease in sales and orders in third quarter 2019.
“We continue to face—and our results this quarter were impacted by—industry-wide headwinds, the effect of the global slowdown and the ongoing effects of the trade tension between the United States and China,” the Blue Ash, Ohio-based company said in a report issued on Nov. 12.
Sales of US$250.3 million decreased 11.5% from sales of US$282.8 million in the same period a year ago, according to the company. Excluding the unfavorable effects of currency movements, sales for the third quarter of 2019 decreased 10.2% versus the prior year period. Operating earnings for the third quarter of 2019 decreased 39.5% to US$19.3 million compared with operating earnings of US$31.9 million in the prior-year period.
For the first nine months of 2019, Milacron’s year-to-date sales decreased 12.0% to US$770.4 million from US$875.2 million during the same period in 2018. Operating earnings during the first nine months of 2019 decreased 24.0% to US$69.0 million compared to operating earnings of US$90.8 million in the prior-year period.
Milacron’s business segments – Melt Delivery & Control Systems (MDCS), Fluid Technologies, and Advanced Plastic Processing Technologies (APPT) – all reported decreased sales and operating earnings for the third quarter of 2019 when compared to the same period in 2018.
Hillenbrand, an industrial equipment maker headquartered in Batesville, Ind., announced that it was acquiring Milacron in July 2019 in a cash and stock deal valued at about US$2 billion. The transaction is expected to close by the end of 2019, and Milacron is holding a special meeting of its stockholders on Nov. 20 to vote on the proposals necessary to complete the merger.