EX-99 7 ex992.htm EXHIBIT 99.2 .

EXHIBIT 99.2



Milacron Inc.


Set forth below is information regarding preliminary unaudited financial  results of Milacron Inc. and its consolidated subsidiaries (the "Milacron") for the fourth quarter and full year of 2008, as well as certain selected financial information.  


Milacron  had a net loss in the fourth quarter of 2008 of $12.3 million, or $2.41  per share (before the effect of goodwill impairment testing, which is not yet complete), which included $3.9 million in restructuring and other charges.  This compared to a net loss of $71.7 million, or $14.32 per share, in the fourth quarter of 2007.  The large year-ago net loss was caused primarily by a non-cash writedown of deferred tax assets of $63.0 million associated with the change of ownership of the majority of the company’s preferred stock, as well as by $10.7 million in restructuring and other charges.  


Operating losses (EBIT) for the fourth quarter of 2008, including restructuring and other charges, were $3.5 million, compared to $1.2 million of operating earnings for the same quarter of 2007.  Sales for the 2008 fourth quarter were $175 million, down from $217 million a year ago.


Consolidated Year 2008 Results

Milacron’s net loss for the year was $24.9 million, or $6.18 per share, in 2008, including restructuring and other charges of $9.9 million, versus $87.1 million, or $19.25 per share, including restructuring and other charges of $16.3 million, in 2007.  In 2008 Milacron had operating earnings (EBIT) of $11.0 million, up from $4.8 million in 2007, in each case including restructuring and other charges.  Sales in 2008 were $788 million, down from $808 million in the prior year.


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]   Fourth quarter sales of $83 million were down from $92 million a year ago.  Segment earnings were $0.3 million, the same as in the fourth quarter of 2007.  


For the year 2008, sales were $363 million, off slightly from $367 million in 2007.   Segment earnings rose to $19.5 million, up from $10.8 million a year ago.


Machinery Technologies-Europe  [machinery and related parts and services for injection molding and blow molding supplied from Europe]  Sales in the fourth quarter fell to $41 million from $60 million in the year-ago quarter, leading to a segment loss of $0.9 million compared to earnings of $3.3 million in the fourth quarter of 2007.  


Sales for 2008 were $173 million, off from $181 million in 2007.   The segment loss for the year was $2.8 million compared to operating earnings of $3.3 million in the prior year.


Mold Technologies  [mold bases and related parts and services, as well as maintenance, repair and operating (MRO) supplies for injection molding worldwide]  Sales in the fourth quarter of $31 million declined from $38 million in the year-ago quarter.  Segment earnings fell to $1.6 million from $2.8 million in the fourth quarter of 2007.  


Sales for 2008 were $142 million, off from $148 million in the prior year.  Segment earnings for the year rose, however, to $3.8 million from $1.9 million in 2007.




Industrial Fluids  [water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide]  Fourth quarter sales were $26 million, down from $31 million in the year-ago quarter.  Segment earnings also declined to $2.1 million from $6.6 million. The fourth quarter 2007 was aided considerably by a $4.1 million favorable resolution of product liability claims.


Industrial fluids sales in 2008 were $126 million, up over $124 million in 2007.  Segment earnings fell to $13.0 million from $16.6 million in 2007.

Note: Financial results in this filing and accompanying tables are preliminary, unaudited and subject to change.

Selected 2008-09 Information

The following information is being provided for the sole purpose of making public certain information provided to representatives of Avenue Capital Group and DDJ Capital Management LLC in connection with their evaluation of restructuring transactions involving Milacron.  In connection with that evaluation, Milacron provided the modified financial segment preliminary sales and EBITDA before restructuring charges results for 2008 and forecasts for 2009 set forth below to such representatives.  Such segment information was modified in each case to exclude corporate allocation expense and, in the case of Machinery Technologies--North America, the results of Indian and Chinese operations. EBITDA before restructuring charges refers to earnings before restructuring charges, interest, taxes, depreciation and amortization and is reconciled to operating earnings for purposes of the presentation below.

($ in Millions)


 

12 Months Ended

December 31, 2008

12 Months Ending

December 31, 2009

   

Machinery Technologies --North America

  

Sales

318.0

206.2

EBITDA Before Restructuring Charges

24.9

6.7

Restructuring Charges

1.4

.4

Depreciation and Amortization

4.5

4.6

Operating Earnings

19.0

1.7

   

Mold Technologies

  

Sales

141.6

111.1

EBITDA Before Restructuring Charges

6.7

6.5

Restructuring Charges

2.8

2.0

Depreciation and Amortization

2.7

2.5

Operating Earnings

1.2

2.0

   

Industrial Fluids

  

Sales

126.4

113.1

EBITDA Before Restructuring Charges

14.1

8.4

Restructuring Charges

.5

--

Depreciation and Amortization

1.8

1.9

Operating Earnings

11.8

6.5








Forward-Looking Statements


The above forward-looking statements by their nature involve risks and uncertainties that could significantly impact operations, markets, products and expected results, including the ongoing credit crisis, deteriorating global economic conditions,  the potential adverse impact of its Chapter 11 cases on Milacron's operations and relationships with customers and suppliers and its ability to enter into and close a definitive asset purchase agreement for the sale of its assets.  For further information please refer to the Cautionary Statement included in Milacron's most recent Form 10-Q on file with the Securities and Exchange Commission.  Milacron disclaims any obligation to update such forward-looking statements.











Milacron Inc. and Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Fourth Quarter 2008

 

 

 

 

 

 

 

 

 

 

 

    

Three Months Ended

 

Twelve Months Ended

    

December 31,

 

December 31,

 

 

 

 

2008

 

2007

 

2008

 

2007

           

Sales

   

$  174,686,000

 

$     216,582,000

 

$  788,191,000

 

$     807,868,000

           

Loss from continuing operations

  

 (13,333,000)

 

  (72,709,000)

 

  (25,871,000)

 

   (88,223,000)

     Per Share

         

       Basic

   

      (2.59)

 

      (14.52)

 

(6.37)

 

      (19.48)

       Diluted

  

      (2.59)

 

      (14.52)

 

(6.37)

 

      (19.48)

           

Earnings from discontinued operations

 

1,002,000

 

   1,037,000

 

 1,002,000

 

   1,172,000

     Per Share

         

       Basic

   

       0.18

 

 0.20

 

 0.19

 

 0.23

       Diluted

  

       0.18

 

 0.20

 

 0.19

 

 0.23

           

Net loss

   

 (12,331,000)

 

        (71,672,000)

 

 (24,869,000)

 

 (87,051,000)

     Per Share

         

       Basic

   

(2.41)

 

      (14.32)

 

(6.18)

 

      (19.25)

       Diluted

  

(2.41)

 

      (14.32)

 

(6.18)

 

      (19.25)

           
           

Common shares

         

     Weighted average outstanding for basic EPS

 

 5,670,000

 

   5,167,000

 

 5,377,000

 

   5,008,000

     Weighted average outstanding for diluted EPS

 5,670,000

 

   5,167,000

 

 5,377,000

 

   5,008,000

     Outstanding at quarter end

  

 6,033,000

 

   5,486,000

 

 6,033,000

 

   5,486,000

           
           

 

 

 

 

 

 

 

 

 

 

 

           

Notes:

          

These statements are unaudited and subject to year-end adjustments including goodwill impairment testing, which is not yet complete.

Per-share amounts include accruals for preferred dividends and the effect of a beneficial conversion feature.








Consolidated Earnings

  

 

 

 

 

 

 

 

Milacron Inc. and Subsidiaries

  

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

  

 

 

 

 

 Fourth Quarter 2008

 

  

 

 

 

 

 

 

 

(In millions, except per-share data)

  

Three Months Ended

 

Twelve Months Ended

 

  

December 31,

 

December 31,

 

  

2008

 

2007

 

2008

 

2007

 

         

Sales

  

 $    174.7 

 

 $     216.6 

 

 $    788.2 

 

 $     807.9 

Cost of products sold

  

       140.0 

 

        168.0 

 

       627.6 

 

        644.9 

Cost of products sold related to restructuring

 

               -   

 

            0.2 

 

           0.4 

 

            0.2 

  Total cost of products sold

 

 

       140.0 

 

        168.2 

 

       628.0 

 

        645.1 

   Manufacturing margins

 

 

         34.7 

 

          48.4 

 

       160.2 

 

        162.8 

      Percent of sales

 

 

19.9%

 

22.3%

 

20.3%

 

20.2%

 

 

 

 

 

 

 

 

 

 

Other costs and expenses

 

 

 

 

 

 

 

 

 

   Selling and administrative

 

 

        33.1 

 

          39.3 

 

       138.8

 

        144.6 

   Restructuring and other costs

 

 

         3.9 

 

            7.2 

 

           9.5 

 

          12.3 

   Change in preferred stock ownership costs

 

               -   

 

            1.4 

 

              -   

 

            1.9 

   Pension plan curtailment cost

 

 

               -   

 

            1.9 

 

              -   

 

            1.9 

   Other income - net

 

 

         1.2 

 

           (2.6)

 

           0.9 

 

           (2.7)

      Total other costs and expenses

 

 

        38.2 

 

          47.2 

 

       149.2 

 

        158.0 

Operating earnings (loss)

 

 

          (3.5)

 

            1.2 

 

         11.0 

 

            4.8 

Interest expense - net

 

 

          (8.3)

 

           (7.8)

 

        (32.9)

 

         (31.4)

Loss from continuing operations before

 

 

 

 

 

 

 

 

 

   income taxes

 

 

        (11.8)

 

           (6.6)

 

        (21.9)

 

         (26.6)

Provision (benefit) for income taxes (a)

 

 

          1.5 

 

          66.1 

 

         4.0 

 

          61.7 

Loss from continuing operations

 

 

        (13.3)

 

         (72.7)

 

        (25.9)

 

         (88.3)

Discontinued operations - net of income taxes (b)

 

           1.0 

 

            1.0 

 

         1.0 

 

            1.2 

Net loss

 

 

 $    (12.3)

 

 $      (71.7)

 

 $     (24.9)

 

 $      (87.1)

Loss per common share - basic and diluted

 

 

 

 

 

 

 

 

 

      Continuing operations

 

 

 $    (2.59)

 

 $    (14.52)

 

 $    (6.37)

 

 $    (19.48)

      Discontinued operations

 

 

        0.18 

 

          0.20 

 

       0.19 

 

          0.23 

         Net loss

 

 

 $    (2.41)

 

 $    (14.32)

 

 $    (6.18)

 

 $    (19.25)

 

 

 

 

 

 

 

 

 

 

(a)  In 2007, includes a $63 million non-cash charge associated with the change in ownership of a majority of the company's

       Series B Preferred Stock, as announced in October, 2007.

 

 

 

 

 

 

 

(b)  Represents adjustments of reserves related to prior divestitures.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

 

 

These statements are unaudited and subject to year-end adjustments including goodwill impairment testing, which is not yet complete.

Per-share amounts include accruals for preferred dividends and effect of beneficial conversion feature.

 

 

 








Consolidated Balance Sheets

           

Milacron Inc. and Subsidiaries

           

 

           

 

      

Fourth Quarter 2008

 

        

 

 

 

(In millions)

        

December 31,

 

December 31,

 

        

2008

 

2007

 

        

 

 

 

Assets

        

 

 

 

Cash and cash equivalents

        

 $           28.9

 

 $            40.8

Notes and accounts receivable-net

        

              92.5

 

             114.6

Inventories

        

            164.2

 

             179.7

Other current assets

        

              16.4

 

               34.9

       Total current assets

        

            302.0

 

             370.0

Property, plant and equipment - net

        

              98.4

 

             106.4

Goodwill

        

              87.5

 

               90.5

Other noncurrent assets

        

              35.4

 

               36.0

       Total assets

        

 $         523.3

 

 $          602.9

 

        

 

 

 

Liabilities and shareholders' deficit

        

 

 

 

Short-term borrowings and long-term debt due within one year

 

 

  

 $           46.7

 

 $            29.0

Trade accounts payable and advance billings and deposits

 

 

 

 

  

              94.0

 

             121.5

Accrued and other current liabilities

        

              59.6

 

               76.6

       Total current liabilities

        

            200.3

 

             227.1

Long-term accrued liabilities

        

            307.1

 

             193.3

Long-term debt

        

            244.6

 

             231.9

Shareholders' deficit

        

          (228.7)

 

             (49.4)

       Total liabilities and shareholders' deficit

       

 $        523.3

 

 $          602.9

            
            

Note:  These statements are unaudited and subject to year-end adjustments including goodwill impairment testing, which is not

            yet complete.

           







Consolidated Cash Flows

     

 

 

 

 

Milacron Inc. and Subsidiaries

        

 

 

      

Fourth Quarter 2008

 

        

 

(In millions)

  

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

 

  

2008

 

2007

 

2008

 

2007

Increase (decrease) in cash and cash equivalents

        

Operating activities cash flows

         

   Net loss

  

$     (12.3)

 

$      (71.7)

 

$       (24.9)

 

$      (87.1)

   Discontinued operations - net of income taxes

  

   (1.0)

 

    (1.0)

 

   (1.0)

 

    (1.2)

   Depreciation and amortization

  

    3.3 

 

      4.1 

 

  13.9 

 

    16.1 

   Restructuring and other costs

  

    1.9 

 

      8.9 

 

    4.5 

 

    10.2 

   Working capital changes

         

        Notes and accounts receivable

  

  12.2 

 

      8.1 

 

  19.8 

 

      3.7 

        Inventories

  

  18.3 

 

      5.8 

 

  12.4 

 

    (4.4)

        Other current assets

  

    3.9 

 

      0.9 

 

    7.2 

 

    (3.7)

        Trade accounts payable

  

   (3.7)

 

      2.7 

 

(14.9)

 

    11.7 

        Other current liabilities

  

(23.8)

 

  (16.2)

 

(20.5)

 

  (13.3)

   Deferred income taxes and other - net

  

   (5.0)

 

    68.0 

 

(31.4)

 

    77.6 

        Net cash provided (used) by operating activities

   (6.2)

 

      9.6 

 

(34.9)

 

      9.6 

          

Investing activities cash flows

         

   Capital expenditures

  

   (1.8)

 

    (3.6)

 

   (8.7)

 

    (9.6)

   Net disposals of property, plant and equipment

 

        -   

 

      0.1 

 

    0.7 

 

      0.3 

        Net cash used by investing activities

  

   (1.8)

 

    (3.5)

 

   (8.0)

 

    (9.3)

          

Financing activities cash flows

         

   Issuance (repayments) of long-term debt

  

   (0.4)

 

    (1.0)

 

  14.6 

 

    (1.6)

   Increase (decrease) in short-term borrowings

 

    6.4 

 

    (2.3)

 

  18.0 

 

      1.0 

   Dividends paid

  

        -   

 

        -   

 

   (0.1)

 

    (0.2)

        Net cash provided (used) by financing activities

    6.0 

 

    (3.3)

 

  32.5 

 

    (0.8)

          

Effect of exchange rate fluctuations on cash

        

   and cash equivalents

  

   (1.6)

 

      0.5 

 

   (1.5)

 

      2.8 

Increase (decrease) in cash and cash equivalents

 

   (3.6)

 

      3.3 

 

(11.9)

 

      2.3 

          

Cash and cash equivalents at beginning of period

 

  32.5 

 

    37.5 

 

  40.8 

 

    38.5 

          

Cash and cash equivalents at end of period

  

$       28.9 

 

$         40.8 

 

$        28.9 

 

$        40.8 

 

         
          

Note:  These statements are unaudited and subject to year-end adjustments including goodwill impairment testing, which is not yet complete. 









Segment and Supplemental Information

      

 

Milacron Inc. and Subsidiaries

       

 

 

 

     

Fourth Quarter 2008

 

 

       

 

(In millions)

 

 

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

 

 

 

2008

 

2007

 

2008

 

2007

Machinery technologies North America

        
 

Sales

 

$        83.0

 

 $       91.5

 

$      363.1

 

$       367.0

 

Operating cash flow (a)

 

     1.5

 

     1.6

 

  24.6

 

   16.6

 

Segment earnings

 

     0.3

 

     0.3

 

  19.5

 

   10.8

 

   Percent of sales

 

0.4%

 

0.3%

 

5.4%

 

2.9%

 

New orders

 

  64.4

 

   98.8

 

323.8

 

 378.2

Machinery technologies Europe

        
 

Sales

 

$        40.5

 

$       60.4

 

$      172.5

 

$       180.5

 

Operating cash flow (a)

 

        -  

 

     4.5

 

     0.9

 

     7.3

 

Segment earnings (loss)

 

   (0.9)

 

     3.3

 

   (2.8)

 

     3.3

 

   Percent of sales

 

-2.2%

 

5.5%

 

-1.6%

 

1.8%

 

New orders

 

  23.4

 

   50.5

 

152.6

 

 188.5

Mold technologies

        
 

Sales

 

$        31.2

 

 $37.6

 

$      141.6

 

$       148.2

 

Operating cash flow (a)

 

     2.3

 

     3.9

 

     6.6

 

     6.4

 

Segment earnings (loss)

 

     1.6

 

     2.8

 

     3.8

 

     1.9

 

   Percent of sales

 

5.1%

 

7.4%

 

2.7%

 

1.3%

 

New orders

 

  30.4

 

   37.2

 

140.8

 

 147.8

Eliminations

        
 

Sales

 

$        (6.1)

 

 $        (4.2)

 

$      (15.0)

 

$        (11.8)

 

New orders

 

   (3.4)

 

    (4.6)

 

 (14.8)

 

  (12.9)

     Total plastics technologies

        
 

     Sales

 

$       148.6

 

$       185.3

 

$      662.2

 

$       683.9

 

     Operating cash flow (a)

 

     3.8

 

   10.0

 

  32.1

 

   30.3

 

     Segment earnings

 

     1.0

 

     6.4

 

  20.5

 

   16.0

 

        Percent of sales

 

0.7%

 

3.5%

 

3.1%

 

2.3%

 

     New orders

 

114.8

 

 181.9

 

602.4

 

 701.6

Industrial fluids

        
 

Sales

 

$        26.1

 

 $31.3

 

$      126.0

 

$       124.0

 

Operating cash flow (a)

 

     2.5

 

     7.0

 

  14.7

 

   18.2

 

Segment earnings

 

     2.1

 

     6.6

 

  13.0

 

   16.6

 

   Percent of sales

 

8.0%

 

21.1%

 

10.3%

 

13.4%

 

New orders

 

  26.1

 

   31.3

 

125.9

 

 124.0

Total continuing operations

        
 

Sales

 

$      174.7

 

$       216.6

 

$      788.2

 

$       807.9

 

Operating cash flow (a)

 

     3.7

 

   16.0

 

  34.8

 

   37.2

 

Segment earnings

 

     3.1

 

   13.0

 

  33.5

 

   32.6

 

Restructuring and other costs

 

   (3.9)

 

    (7.4)

 

   (9.9)

 

  (12.5)

 

Change in preferred stock ownership costs

 

        -  

 

    (1.4)

 

        -  

 

    (1.9)

 

Pension plan curtailment cost

 

        -  

 

    (1.9)

 

        -  

 

    (1.9)

 

Corporate expenses

 

   (2.6)

 

    (1.0)

 

 (11.9)

 

  (11.1)

 

Other unallocated expenses

 

   (0.1)

 

    (0.1)

 

   (0.7)

 

    (0.4)

 

Operating earnings (loss)

 

   (3.5)

 

     1.2

 

  11.0

 

     4.8

 

   Percent of sales

 

-2.0%

 

0.6%

 

1.4%

 

0.6%

 

New orders

 

140.9

 

 213.2

 

728.3

 

 825.6

 

Ending backlog

 

  65.8

 

 129.1

 

  65.8

 

 129.1

(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 including goodwill impairment testing, which is not yet complete.







Reconciliation of Earnings to Operating Cash Flows

 

 

 

 

 

 

Milacron Inc. and Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Fourth Quarter 2008

 

 

 

 

 

 

 

 

 

(In millions)

 

Three Months Ended

 

Twelve Months Ended

  

December 31,

 

December 31,

 

 

2008

 

2007

 

2008

 

2007

         

Machinery technologies North America

       
 

Segment earnings

 $       0.3

 

 $       0.3

 

 $       19.5

 

 $       10.8

 

Depreciation and amortization

 1.2

 

  1.3

 

 5.1

 

  5.8

 

Operating cash flow

 1.5

 

  1.6

 

    24.6

 

16.6

         

Machinery technologies Europe

       
 

Segment earnings (loss)

 $     (0.9)

 

 $      3.3

 

 $      (2.8)

 

 $        3.3

 

Depreciation and amortization

 0.9

 

  1.2

 

 3.7

 

  4.0

 

Operating cash flow

-  

 

  4.5

 

 0.9

 

  7.3

         

Mold technologies

       
 

Segment earnings (loss)

 $        1.6

 

 $      2.8

 

 $        3.8

 

 $        1.9

 

Depreciation and amortization

 0.7

 

  1.1

 

 2.8

 

  4.5

 

Operating cash flow

 2.3

 

  3.9

 

 6.6

 

  6.4

         

Total plastics technologies

       
 

   Segment earnings

 $        1.0

 

 $      6.4

 

 $       20.5

 

 $      16.0

 

   Depreciation and amortization

 2.8

 

  3.6

 

    11.6

 

14.3

 

   Operating cash flow

 3.8

 

10.0

 

    32.1

 

30.3

         

Industrial fluids

       
 

Segment earnings

 $        2.1

 

 $      6.6

 

 $        13.0

 

 $      16.6

 

Depreciation and amortization

 0.4

 

  0.4

 

 1.7

 

  1.6

 

Operating cash flow

 2.5

 

  7.0

 

    14.7

 

18.2

         

Total continuing operations

       
 

Net loss

 $    (12.3)

 

 $  (71.7)

 

 $      (24.9)

 

 $    (87.1)

 

Discontinued operations - net of income taxes (a)

(1.0)

 

(1.0)

 

(1.0)

 

(1.2)

 

Provision (benefit) for income taxes (b)

 1.5

 

66.1

 

 4.0

 

61.7

 

Interest expense - net

 8.3

 

  7.8

 

    32.9

 

31.4

 

Restructuring and other costs

 3.9

 

  7.4

 

 9.9

 

12.5

 

Change in preferred stock ownership costs

-  

 

  1.4

 

-  

 

  1.9

 

Pension plan curtailment cost

-  

 

  1.9

 

-  

 

  1.9

 

Depreciation and amortization

 3.3

 

  4.1

 

    13.9

 

16.1

 

Operating cash flow

 $       3.7

 

 $     16.0

 

 $      34.8

 

$      37.2

         
         

(a)  Represents adjustments of reserves related to prior divestitures.

 

 

 

 

 

 

(b)  In 2007, includes a $63 million non-cash charge associated with the change in ownership of a majority of the company's

       Series B Preferred Stock, as announced in October, 2007.

 

 

 

 

 

 

Note:  These statements are unaudited and subject to year-end adjustments including goodwill impairment testing, which is not yet complete.








Historical Information

 

(In millions, except per-share data) 

  

2007

 

2008

 

 

Qtr 1

 

Qtr 2

 

Qtr 3

 

Qtr 4

 

Year

 

Qtr 1

 

Qtr 2

 

Qtr 3

 

Qtr 4

 

Year

                     

Sales

 

$   190.3

 

$   197.3

 

$   203.7

 

$   216.6

 

$    807.9

 

$   202.8

 

$   215.7

 

$   195.0

 

$   174.7

 

$    788.2

Cost of products sold

  

154.8

 

158.6

 

163.5

 

168.0

 

 644.9

 

164.2

 

167.5

 

155.9

 

140.0

 

 627.6

Cost of products sold related to restructuring

 

 -  

 

 -  

 

 -  

 

    0.2

 

     0.2

 

 -  

 

 -  

 

    0.4

 

 -  

 

     0.4

Total cost of products sold

 

154.8

 

158.6

 

163.5

 

168.2

 

 645.1

 

164.2

 

167.5

 

156.3

 

140.0

 

 628.0

                        

   Manufacturing margins

  

  35.5

 

  38.7

 

  40.2

 

  48.4

 

 162.8

 

  38.6

 

  48.2

 

  38.7

 

  34.7

 

 160.2

                        

Other costs and expenses

                     

   Selling and administrative

 

  35.3

 

  34.9

 

  35.1

 

  39.3

 

 144.6

 

  36.0

 

  37.9

 

  31.8

 

  33.1

 

 138.8

   Restructuring and other costs (a)

 

    2.4

 

    1.5

 

    1.2

 

    7.2

 

   12.3

 

    0.6

 

    4.3

 

    0.7

 

    3.9

 

     9.5

   Change in preferred stock ownership costs

 

 -  

 

 -  

 

    0.5

 

    1.4

 

     1.9

 

 -  

 

 -  

 

 -  

 

 -  

 

  -  

   Pension plan curtailment cost

 

 -  

 

 -  

 

 -  

 

    1.9

 

     1.9

 

 -  

 

 -  

 

 -  

 

 -  

 

  -  

   Other - net

  

  (0.2)

 

  (0.3)

 

    0.4

 

  (2.6)

 

    (2.7)

 

    0.5

 

  (0.5)

 

  (0.3)

 

    1.2

 

     0.9

Total other costs and expenses

 

  37.5

 

  36.1

 

  37.2

 

  47.2

 

 158.0

 

  37.1

 

  41.7

 

  32.2

 

  38.2

 

 149.2

                        

Operating earnings (loss)

 

  (2.0)

 

    2.6

 

    3.0

 

    1.2

 

     4.8

 

    1.5

 

    6.5

 

    6.5

 

  (3.5)

 

   11.0

                        

Interest expense - net

  

  (7.7)

 

  (7.9)

 

  (8.0)

 

  (7.8)

 

  (31.4)

 

  (8.0)

 

  (8.2)

 

  (8.4)

 

  (8.3)

 

  (32.9)

                        

Loss from continuing operations

                    

   before income taxes

  

  (9.7)

 

  (5.3)

 

  (5.0)

 

  (6.6)

 

  (26.6)

 

  (6.5)

 

  (1.7)

 

  (1.9)

 

(11.8)

 

  (21.9)

                        

Provision (benefit) from income taxes (b)

 

    1.0

 

  (4.9)

 

  (0.5)

 

  66.1

 

   61.7

 

    0.4

 

    1.4

 

    0.7

 

    1.5

 

     4.0

                        

Earnings (loss) from continuing operations

 

(10.7)

 

  (0.4)

 

  (4.5)

 

(72.7)

 

  (88.3)

 

  (6.9)

 

  (3.1)

 

  (2.6)

 

(13.3)

 

  (25.9)

                        

Discontinued operations - net of income taxes (c)

                   

   Net gain (loss) on divestitures

 

  (0.1)

 

    0.3

 

 -  

 

    1.0

 

     1.2

 

 -  

 

 -  

 

 -  

 

    1.0

 

     1.0

Total discontinued operations

 

  (0.1)

 

    0.3

 

 -  

 

    1.0

 

     1.2

 

 -  

 

 -  

 

 -  

 

    1.0

 

     1.0

         

 

              

Net earnings (loss)

  

$   (10.8)

 

$     (0.1)

 

$     (4.5)

 

$   (71.7)

 

$     (87.1)

 

$     (6.9)

 

$     (3.1)

 

$     (2.6)

 

$   (12.3)

 

$     (24.9)

                        

Earnings (loss) per common share

                    

   Basic

                     

      Continuing operations

 

$   (2.66)

 

$   (0.55)

 

$   (1.36)

 

$ (14.52)

 

$   (19.48)

 

$   (1.76)

 

$   (1.04)

 

$   (0.93)

 

$   (2.59)

 

$     (6.37)

      Discontinued operations

 

   (0.02)

 

     0.05

 

        -   

 

      0.20

 

       0.23

 

      -   

 

      -   

 

      -   

 

      0.18

 

      0.19

         Net earnings (loss)

  

$   (2.68)

 

$   (0.50)

 

$   (1.36)

 

$ (14.32)

 

$   (19.25)

 

$   (1.76)

 

$   (1.04)

 

$   (0.93)

 

$   (2.41)

 

$     (6.18)

   Diluted

                     

      Continuing operations

 

$   (2.66)

 

$   (0.55)

 

$   (1.36)

 

$ (14.52)

 

$   (19.48)

 

$   (1.76)

 

$   (1.04)

 

$   (0.93)

 

$   (2.59)

 

$     (6.37)

      Discontinued operations

 

   (0.02)

 

     0.05

 

         -   

 

      0.20

 

      0.23

 

         -   

 

         -   

 

         -   

 

      0.18

 

       0.19

         Net earnings (loss)

  

$   (2.68)

 

$   (0.50)

 

$   (1.36)

 

$ (14.32)

 

$   (19.25)

 

$   (1.76)

 

$   (1.04)

 

 $   (0.93)

 

$   (2.41)

 

$     (6.18)

                        

(a)  In 2007 and 2008, 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 2008, also includes CEO transition costs.

 

(b)  In 2007, includes a $63 million non-cash charge associated with the change in ownership of a majority of the company's Series B Preferred Stock, as announced in October, 2007.

 

(c)  All years, represents adjustments of reserves related to prior divestitures.

Notes:

These statements are unaudited and subject to year-end adjustments including goodwill impairment testing, which is not yet complete.

Per-share amounts include accruals for preferred dividends and effect of beneficial conversion feature.








Historical Segment and Supplemental Information

(In Millions)

     

2007

 

2008

 

 

 

 

 

Qtr 1

 

Qtr 2

 

Qtr 3

 

Qtr 4

 

Year

 

Qtr 1

 

Qtr 2

 

Qtr 3

 

Qtr 4

 

Year

Machinery technologies North  America

                  
 

Sales

   

 $     91.1

 

 $     91.5

 

 $     92.9

 

 $     91.5

 

 $     367.0

 

 $     92.4

 

 $    95.3

 

 $    92.4

 

 $     83.0

 

 $     363.1

 

Operating cash flow (a)

 

          3.4

 

          6.5

 

          5.1

 

          1.6

 

          16.6

 

          4.1

 

         9.3

 

         9.7

 

          1.5

 

          24.6

 

Segment earnings

  

          1.8

 

          4.9

 

          3.8

 

          0.3

 

          10.8

 

          2.8

 

         8.0

 

         8.4

 

          0.3

 

          19.5

 

New orders

  

        97.9

 

        90.1

 

        91.4

 

        98.8

 

        378.2

 

        93.9

 

       83.1

 

       82.4

 

        64.4

 

        323.8

Machinery technologies Europe

                    
 

Sales

   

 $     34.4

 

 $     40.2

 

 $     45.5

 

 $     60.4

 

 $     180.5

 

 $     44.0

 

 $    50.0

 

 $    38.0

 

 $     40.5

 

 $     172.5

 

Operating cash flow (a)

 

        (0.2)

 

          1.2

 

          1.8

 

          4.5

 

            7.3

 

          0.5

 

         1.4

 

       (1.0)

 

             -  

 

            0.9

 

Segment earnings (loss)

 

        (1.2)

 

          0.3

 

          0.9

 

          3.3

 

            3.3

 

        (0.4)

 

         0.4

 

       (1.9)

 

        (0.9)

 

           (2.8)

 

New orders

  

        46.6

 

        45.1

 

        46.3

 

        50.5

 

        188.5

 

        42.6

 

       41.4

 

       45.2

 

        23.4

 

        152.6

Mold technologies

                     
 

Sales

   

 $     37.9

 

 $     35.8

 

 $     36.9

 

 $     37.6

 

 $     148.2

 

 $     38.0

 

 $    37.8

 

 $    34.6

 

 $     31.2

 

 $     141.6

 

Operating cash flow (a)

 

          1.4

 

          0.3

 

          0.8

 

          3.9

 

            6.4

 

          1.3

 

         1.7

 

         1.3

 

          2.3

 

            6.6

 

Segment earnings (loss)  

 

          0.3

 

        (0.8)

 

        (0.4)

 

          2.8

 

            1.9

 

          0.5

 

         1.0

 

         0.7

 

          1.6

 

            3.8

 

New orders

  

        36.7

 

        36.5

 

        37.4

 

        37.2

 

        147.8

 

        37.8

 

       37.7

 

       34.9

 

        30.4

 

        140.8

Eliminations

                      
 

Sales

   

 $     (2.8)

 

 $     (2.4)

 

 $     (2.4)

 

 $     (4.2)

 

 $      (11.8)

 

 $     (3.1)

 

 $    (2.8)

 

 $    (3.0)

 

 $     (6.1)

 

 $      (15.0)

 

New orders

  

        (2.8)

 

        (2.1)

 

        (3.4)

 

        (4.6)

 

         (12.9)

 

        (2.9)

 

       (3.9)

 

       (4.6)

 

        (3.4)

 

         (14.8)

  Total plastics technologies

                    
 

Sales

   

 $   160.6

 

 $   165.1

 

 $   172.9

 

 $   185.3

 

 $     683.9

 

 $   171.3

 

 $  180.3

 

 $  162.0

 

 $   148.6

 

 $     662.2

 

Operating cash flow (a)

 

          4.6

 

          8.0

 

          7.7

 

        10.0

 

          30.3

 

          5.9

 

       12.4

 

       10.0

 

          3.8

 

          32.1

 

Segment earnings

  

          0.9

 

          4.4

 

          4.3

 

          6.4

 

          16.0

 

          2.9

 

         9.4

 

         7.2

 

          1.0

 

          20.5

 

New orders

  

      178.4

 

      169.6

 

      171.7

 

      181.9

 

        701.6

 

      171.4

 

     158.3

 

     157.9

 

      114.8

 

        602.4

Industrial fluids

                      
 

Sales

   

 $     29.7

 

 $     32.2

 

 $     30.8

 

 $     31.3

 

 $     124.0

 

 $     31.5

 

 $    35.4

 

 $    33.0

 

 $     26.1

 

 $     126.0

 

Operating cash flow (a)

 

          3.6

 

          3.6

 

          4.0

 

          7.0

 

          18.2

 

          3.3

 

         5.1

 

         3.8

 

          2.5

 

          14.7

 

Segment earnings  

  

          3.3

 

          3.2

 

          3.5

 

          6.6

 

          16.6

 

          2.9

 

         4.6

 

         3.4

 

          2.1

 

          13.0

 

New orders

  

        29.7

 

        32.2

 

        30.8

 

        31.3

 

        124.0

 

        31.4

 

       35.4

 

       33.0

 

        26.1

 

        125.9

Total continuing operations

                     
 

Sales

   

 $   190.3

 

 $   197.3

 

 $   203.7

 

 $   216.6

 

 $     807.9

 

 $   202.8

 

 $  215.7

 

 $  195.0

 

 $   174.7

 

 $     788.2

 

Operating cash flow (a)

 

          4.4

 

          8.2

 

          8.6

 

        16.0

 

          37.2

 

          5.7

 

       14.4

 

       11.0

 

          3.7

 

          34.8

 

Segment earnings

  

          4.2

 

          7.6

 

          7.8

 

        13.0

 

          32.6

 

          5.8

 

       14.0

 

       10.6

 

          3.1

 

          33.5

 

Restructuring and other costs (b)

        (2.4)

 

        (1.5)

 

        (1.2)

 

        (7.4)

 

         (12.5)

 

        (0.6)

 

       (4.3)

 

       (1.1)

 

        (3.9)

 

           (9.9)

 

Change in preferred stock

                    
 

   ownership costs

  

             -  

 

             -  

 

        (0.5)

 

        (1.4)

 

           (1.9)

 

             -  

 

            -  

 

            -  

 

             -  

 

               -  

 

Pension plan curtailment cost

   

             -  

 

             -  

 

             -  

 

        (1.9)

 

           (1.9)

 

             -  

 

            -  

 

            -  

 

             -  

 

               -  

 

Corporate expenses  

  

        (3.7)

 

        (3.4)

 

        (3.0)

 

        (1.0)

 

         (11.1)

 

        (3.5)

 

       (3.1)

 

       (2.7)

 

        (2.6)

 

         (11.9)

 

Other unallocated expenses

 

        (0.1)

 

        (0.1)

 

        (0.1)

 

        (0.1)

 

           (0.4)

 

        (0.2)

 

       (0.1)

 

       (0.3)

 

        (0.1)

 

           (0.7)

 

Operating earnings (loss)

 

        (2.0)

 

          2.6

 

          3.0

 

          1.2

 

            4.8

 

          1.5

 

         6.5

 

         6.5

 

        (3.5)

 

          11.0

 

   Percent of sales

  

-1.1%

 

1.3%

 

1.5%

 

0.6%

 

0.6%

 

0.7%

 

3.0%

 

3.3%

 

-2.0%

 

1.4%

 

New orders

  

      208.1

 

      201.8

 

      202.5

 

      213.2

 

        825.6

 

      202.8

 

     193.7

 

     190.9

 

      140.9

 

        728.3

 

Ending backlog

  

      126.6

 

      132.1

 

      131.2

 

      129.1

 

        129.1

 

      134.1

 

     110.8

 

     102.7

 

        65.8

 

          65.8

                        

(a)  Represents EBITDA (earnings before interest, income taxes, depreciation and amortization) before restructuring costs.

(b)  In 2007 and 2008, 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 2008, also includes CEO transition costs.

Note:  These statements are unaudited and subject to year-end adjustments including goodwill impairment testing, which is not yet complete.