Page 46 - Plastics News May 2018

Business news

Milacron reports first quarter results

ilacron Holdings Corp. reported and packaging. The Melt Delivery & Control Systems unit,
Mfirst-quarter sales of $310 million, which includes hot runners, process control systems and
8.8 percent above the first quarter a mold bases and components, generated first-quarter sales
year ago. "Milacron started 2018 with of $116.5 million, up 14 percent from the first quarter of
a strong first quarter," CEO Tom Goeke 2017. The growth was driven mainly by double-digit hot
said in a conference call with financial runner growth in the automotive, consumer goods and
analysts April 26. He credited much of electronics segments, Chalmers said.
the growth to "emerging markets like
China and India." Net profit was $5.9 million. Milacron lost
$24.6 million in the first quarter of 2017. Orders dropped Exxon first-quarter profit misses
slightly compared to the year-ago first quarter. Milacron
officials said it was a tough comparison with the 2017 first estimates
quarter, which had very good order rates. Goeke said first-
quarter 2018 orders were "smooth and healthy" and that xxon Mobil Corp, the world’s largest publicly
orders "continue to be solid." He talked about the effect Etraded oil producer, posted a lower-than-expected
of NPE on orders industrywide: "When we come into a quarterly profit as weakness in its chemical and refining
big trade show like that in North America, Q1 and Q2 are operations offset a boost from higher crude prices. It
usually softer, and then it gets stronger in Q3 and 4," he was the second consecutive quarter of weakness in
said, citing customers who hold off on buying until they Exxon units that make gasoline, plastics and related
come to NPE to compare machinery. products. Exxon blamed weak margins for the income
NPE2018 is important for Milacron (Booth W2703), in large drop in those segments. The company posted net
part because the company is launching the "Cincinnati" income of $4.7 billion, or $1.09 per share, compared
line of large tonnage injection presses, showing one with to $4.01 billion, or 95 cents per share, in the year-ago
2,250 tons of clamping force, in Orlando. Goeke said the
Cincinnati — named in honor of Milacron's hometown — will
be aimed at automotive and industrial markets, including
appliances. Milacron also will launch a new platform
packaging machine coming from its plant in India. Other
new products include a sequential electronic valve gate
in a hot runner system geared toward large molds in
automotive and appliance, he said.

Goeke said Milacron's long-term goal is to generate 75
percent of its sales mix from consumable items, like
hot runners, mold bases, components and aftermarket quarter. Profit jumped more than 50 percent in the
business. In the first quarter the figure was 68 percent. company’s upstream division, which pumps oil and
Bruce Chalmers, Milacron's chief financial officer, said the natural gas, thanks largely to rising commodity prices.
machinery manufacturer's backlog is about $300 million, In the downstream refining unit, though, profit fell 12
a good chunk of that from aftermarket and consumables. percent, and in the chemical unit, profit dropped 14
Sales went up in all three segments for the company based percent. Production fell 6 percent to 3.9 million barrels
in Blue Ash, Ohio, a suburb of Cincinnati. The machinery of oil equivalent per day (boe/d).Exxon said earlier this
business, called Advanced Plastic Processing Technologies, month it resumed production at the Papua New Guinea
generated sales of $161.9 in the first quarter, 3 percent liquefied natural gas (LNG) project a fortnight ahead of
higher than the year-ago period. Chalmers said Milacron schedule after it was shut down in the wake of a deadly
is seeing continued strength in automotive, electronics earthquake in February.

Plastics News May 2018 46