Milacron reports record sales for Q2 2018

Milacron quarterly reportIn the company’s July 26, 2018, financial report, Milacron Holdings Corp. (Cincinnati, OH) trumpeted some strong results in the second quarter ended June 30, 2018. “Milacron delivered another solid quarter with 4% constant currency sales growth, and adjusted EBITDA growth of 5%,” said Milacron CEO Tom Goeke. “Our growth continues to be driven by our consumables businesses as well as our high growth regions, China and India. Year-to-date, we have realized adjusted EBITDA growth of 8%, adjusted diluted EPS growth of 12% and free cash flow improvement of $27 million.”

Record sales of $328.1 million increased 6.1% from sales of $309.2 million in the same period a year ago on an as-reported basis, and 3.7% on a constant currency basis, driven by 9% consumables growth. Operating earnings for the second quarter of 2018 increased 21.8% to $35.2 million compared to $28.9 million in the prior year period. 

Adjusted EBITDA for the second quarter of 2018 increased 5.4% to $62.8 million, or 19.1% of sales, compared to $59.6 million, or 19.3% of sales, in the prior year period. Net earnings totaled $14.9 million, or $0.21 per basic and diluted share in the second quarter of 2018, compared to net earnings of $10.1 million, or $0.15 per basic share and $0.14 per diluted share, in the prior year period.

Adjusted net income totaled $34.2 million, or $0.48 per diluted share, in the second quarter of 2018 compared to $32.6 million, or $0.46 per diluted share, in the prior year period.

Year-to-date, Milacron had sales of $638.5 million, an increase of 7.4% from sales of $594.6 million in the same period a year ago. Excluding the favorable effects of currency movements, organic sales for the first six months of 2018 increased 3.5% versus the prior year period. 

Operating earnings for the first six months of 2018 increased 19.2% to $58.3 million compared to operating earnings of $48.9 million in the prior year period. Adjusted EBITDA for the first six months of 2018 increased 7.8% to $118.2 million, or 18.5% of sales, compared to $109.6 million, or 18.4% of sales, in the prior year period. Net earnings totaled $20.8 million, or $0.30 per basic share and $0.29 per diluted share, in the first six months of 2018 compared to a net loss of $14.5 million, or $0.21 per basic and diluted share, in the prior year period. Adjusted net income totaled $62.6 million, or $0.87 per diluted share, in the first six months of 2018 compared to $55.2 million, or $0.78 per diluted share, in the prior year period.

By segment, Q2 sales in the Melt Delivery & Control Systems (MDCS) were $124.1 million compared to $112.4 million in the same period a year ago. For the first six months of 2018, sales were $240.6 million compared to sales of $212.2 million in the same period a year ago.

Sales for the Fluid Technologies segment for the second quarter of 2018 were $33.6 million compared to $30.5 million in the same period a year ago. For the first six months of 2018, sales were $65.6 million compared to sales of $59.5 million in the same period a year ago.

The Advanced Plastic Processing Technologies (APPT) segment saw sales in Q2 of $170.4 million compared to $166.3 million in the same period a year ago. For the first six months of 2018, sales were $332.3 million compared to $322.9 million in the same period a year ago. 

Milacron ended the second quarter of 2018 with cash and cash equivalents of $150.8 million and total debt, excluding unamortized discount and debt issuance costs, of $894.6 million, resulting in net debt of $743.8 million and a net total leverage ratio of 3.1x.

Milacron Chief Financial Officer Bruce Chalmers added: “We continue to strengthen our balance sheet by making voluntary debt payments on our term loan. Through the second quarter, we have paid down $50 million of debt and we expect to pay down an additional $50 million during the remainder of 2018. With regard to full year guidance and the impact of enacted tariffs, we are tightening our original adjusted EBITDA range to $240 million, which represents approximately 5% growth over the prior year. We are also raising our full year tax provision to $38 million, reflecting our continued strong performance in China and India.”

Comments (0)

Please log in or to post comments.
  • Oldest First
  • Newest First
Loading Comments...