Executives at Milacron Holdings Corp. (Cincinnati, OH) were pleased with second quarter results, reporting sales of $301.3 million, up 1.8% from sales of $295.9 million in the year-ago period. However, sales gain spiked to 8.2% after taking away $18.8 million in the second quarter of “unfavorable effects of currency movements.” This is the company’s first quarterly report since completing an initial public offering (IPO).
Net loss for the machinery supplier was $27.2 million, or 51 cents per share, in the second quarter. One year earlier, Milacron had a loss of $2.1 million, or 4 cents per share.
In a conference call on Tuesday morning, CEO Tom Goeke and Chief Financial Officer Bruce Chalmers both expressed their desire to grow the business and reduce operations footprint.
“We are pleased with the strong revenue growth and substantial margin improvement we achieved in the second quarter. These results are a testament to our strategy and reflect our leading position in markets with strong fundamentals, and our lifecycle sales approach. 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. Our Adjusted EBITDA margin improvement also reflects solid execution on our cost reduction programs, including footprint optimization and manufacturing consolidation in Europe,” said Goeke.
Chalmers added that they were delighted to have completed the IPO during the second quarter and are excited about the many value creation opportunities ahead of us. The IPO enabled them to strengthen Milacron’s balance sheet while providing substantial capacity to reinvest and grow the business.
Currently, Milacron is on track to deliver their annual target of 5% organic revenue growth.
Milacron used $265 million in proceeds from its IPO that closed June 24 to repay loans and also gained $8 million from underwriters partially exercising options to buy more of its shares.