Q1 business for Milacron, while meeting “expectations,” revealed a considerable slump in business across the board, with new orders and sales down by double digits and management exiting blowmolding. New orders fell by 10.8% to $275.3 million from $308.5 million for the same period a year ago; sales dropped 13.9% to $248.7 million from $288.8 million for the same period a year ago.
Cash flow from operations of ($4.6) million decreased $16.3 million, driving free cash flow of ($422.4) million, a $34.9 million decrease versus $12.5 million from the prior year period.
Operating earnings (GAAP) increased 11.6% to $25.9 million; adjusted EBITDA (non-GAAP) decreased 23.5% to $41.0 million. Diluted EPS (GAAP) increased 44.4% to $0.13; diluted adjusted EPS (non-GAAP) decreased 30.8% to $0.27.
During the first quarter of 2019, Milacron evaluated its blowmolding business and concluded that it qualifies as a discontinued operation in accordance with U.S. GAAP. This is a result of the company considering whether it would retain the blowmolding business or exit it. The operating results and cash flows related to the blowmolding business have been reflected as discontinued operations in the company’s condensed consolidated statements of operations and condensed consolidated statements of cash flows for all periods presented, said Milacron’s report, while the assets and liabilities that may be sold have been reflected as assets and liabilities held for sale for the current and prior periods in the company’s condensed consolidated balance sheets.
Q1 2019 sales for Advanced Plastic Processing Technologies (APPT) were $119.4 million compared to sales of $140.3 million in the same period a year ago. Excluding $3.8 million of unfavorable effects of currency movements, sales decreased 12.2% over the prior year period. Sales were also down in the Melt Delivery & Control Systems (MDCS), falling to $100.0 million compared to $116.5 million in the same period a year ago. Excluding $4.6 million of unfavorable effects of currency movements, sales decreased 10.2% over the prior year period.
Milacron’s Fluid Technologies business unit saw Q1 sales of $29.3 million compared to $32.0 million in the same period a year ago. Excluding $1.5 million of unfavorable effects of currency movements, sales decreased 3.8% over the prior year period.
“Milacron’s first quarter results were consistent with our expectations, and the first half of 2019 is progressing as anticipated,” said Milacron CEO Tom Goeke. “Orders for the first quarter increased 7% [sequentially] when compared to the third quarter and fourth quarter of 2018, and our India equipment business continued to perform well with double-digit, constant-currency sales growth over prior year.”