Milacron’s sales up in Q2 2015
Company's first quarterly results since IPO.
Processing equipment maker Milacron LLC reported substantially increased sales for the second quarter of 2015 compared to Q2 2014.
The Cincinnati, Ohio-based company reported sales of US$301.3 million, a 1.8% increase from sales of US$295.9 million in the second quarter a year ago. Excluding US$18.8 million of unfavorable effects of currency movements, the company said, sales for the second quarter actually increased 8.2% over the prior year period.
“We are pleased with the strong revenue growth and substantial margin improvement we achieved in the second quarter,” Milacron CEO Tom Goeke said in a statement. “Revenue growth in the second quarter was driven by robust equipment sales in North America, Europe and India, strong growth in the hot runner business as well as our equipment aftermarket parts and service business.”
The sales figures represent the manufacturers’ first financial report since the company went public on the New York Stock Exchange in June.
By segment, sales for Milacron’s Advanced Plastic Processing Technologies business – which includes its machinery and aftermarket business – generated US$169.9 million in the second quarter, an increase of 7.3% from sales of $158.3 million a year ago. “Excluding $7.0 million of unfavorable effects of currency movements, sales increased 11.7% over the prior year period,” Milacron said.
The company’s Melt Delivery and Control Systems segment reported sales for the second quarter 2015 of US$101.8 million, a decrease of 3.2% from sales of $105.2 million a year ago. “Excluding US$8.2 million of unfavorable effects of currency movements, sales increased 4.6% over the prior year period,” the company said. “Sales were driven by growth in hot runner systems, mold assemblies and spare parts across all regions with particular strength in automotive, consumer goods and medical sectors.”
Fluid Technologies reported second quarter 2015 sales of US$29.6 million, a decrease of 8.6% from sales of US$32.4 million a year ago. “Excluding US$3.6 million of unfavorable effects of currency movements, sales increased 2.5% over the prior year period, driven by growth in the European automotive market and in Mexico,” the company said.
“Overall the strong results in the second quarter met our expectations and keep us on track to deliver our annual target of 5% organic revenue growth,” the company said. “This increase is a result of strong top-line growth and our cost reduction initiatives which began to gain traction in the second half of 2014 and will continue to be implemented over the next several years.”