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Husky Injection Molding Systems (Bolton, ON) finished 2009 with a 19% decline in revenues, watching sales fall from $1.2 billion in 2008 to approximately $1 billion last year. According to the financial filings by the company's private equity owner, Onex Corp. (Toronto), revenues were down in all regions, except Latin America, where they rose 13%. Elsewhere, Asia (-3%), North America (-23%), and Europe (-31%) all experienced declines.

PlasticsToday Staff

March 1, 2010

2 Min Read
Latin America a bright spot for Husky in 2009

Husky Injection Molding Systems (Bolton, ON) finished 2009 with a 19% decline in revenues, watching sales fall from $1.2 billion in 2008 to approximately $1 billion last year. According to the financial filings by the company's private equity owner, Onex Corp. (Toronto), revenues were down in all regions, except Latin America, where they rose 13%. Elsewhere, Asia (-3%), North America (-23%), and Europe (-31%) all experienced declines. In the full-year 2009 earnings report, Onex said Husky's revenues last year were also impacted by $18 million in unfavorable foreign currency changes on euro-denominated revenues, and a $20 million hit from the decision to discontinue certain product lines.

"It feels good to have 2009 behind us," said Gerald W. Schwartz, Onex chairman and CEO in a statement. "Not because the world has changed with the start of a new year but there seem to be signs that the worst of the economic recession has passed and that the general sense of malaise is gradually lifting."

For all of Onex's investments, consolidated operating earnings were up 7% to (CAN)$2.0 billion in 2009, with much of the increase resulting from a higher average U.S./Canadian dollar exchange rate. Going forward, the mold, machinery, and hot runner manufacturer will also have to service a secured credit agreement that it entered into in December 2007. That debt comprises a $410 million term loan and $110 million revolving credit facility. The term loan has mandatory principal repayments of $21 million in 2010 and 2011, with the outstanding principal balance due in 2012. The loan also requires that portions of excess cash flows be used to prepay the loan annually. As a result in 2010, Husky will be required to repay an additional $9 million of its term loan. —[email protected]

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