Milacron Holdings Corp. (Blue Ash, OH) reported missing Q3 2019 earnings and revenue estimates. “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 company stated in the report, released on Nov. 12, 2019.
Sales of $250.3 million decreased 11.5% from sales of $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 $19.3 million compared with operating earnings of $31.9 million in the prior-year period.
Adjusted EBITDA for the third quarter of this year decreased 16.0% to $45.1 million, or 18.0% of sales, compared to adjusted EBITDA of $53.7 million, or 19.0% of sales, in the prior-year period. Net earnings from continuing operations totaled $4.3 million, or $0.06 per basic and diluted share, in Q3 2019 compared with net earnings from continuing operations of $13.8 million, or $0.20 per basic share and $0.19 per diluted share, in the same period a year ago.
Adjusted net income (non-GAAP) totaled $24.6 million, or $0.34 per diluted share, in the third quarter of 2019 compared to adjusted net income of $28.5 million, or $0.40 per diluted share, in the prior-year period.
For the first nine months, Milacron’s year-to-date sales decreased 12.0% to $770.4 million from $875.2 million during the same period in 2018. Operating earnings during the first nine months of 2019 decreased 24.0% to $69.0 million compared to operating earnings of $90.8 million in the prior-year period.
Net earnings from continuing operations totaled $18.5 million, or $0.26 per basic and diluted share, in the first nine months of 2019 compared to net earnings from continuing operations of $36.2 million, or $0.52 per basic share and $0.50 per diluted share, in the prior-year period. Adjusted net income totaled $68.0 million, or $0.95 per diluted share, in the first nine months of 2019 compared to adjusted net income of $89.3 million, or $1.24 per diluted share, in the prior year.
Milacron’s business segments—Melt Delivery & Control Systems (MDCS), Fluid Technologies, and Advanced Plastic Processing Technologies (APPT)—all showed decreased sales and operating earnings for Q3 and YTD 2019 when compared to the same period in 2018.
On July 1, 2019, Milacron completed the sale of substantially all of its blow-molding business, as had been announced earlier in the year. The operating results and cash flows related to the blow-molding business have been reflected as discontinued operations in the company’s statements.
As previously announced on July 12, 2019, Hillenbrand Inc. entered into a definitive agreement to acquire Milacron in a cash and stock transaction. The transaction is expected to close by the end of 2019, and Milacron is holding a special meeting of its stockholders on Nov. 20, 2019, to vote on the proposals necessary to complete the merger.
The company did not host a conference call to report its Q3 2019 results because of the pending closure of the acquisition by Hillenbrand.