Milacron Holdings Corp. reported higher sales and profit in the second quarter of 2016 — even as the overall U.S. economy remains in slow-growth mode.
“Milacron had a solid quarter as we were able to successfully navigate a touchy macro environment,” CEO Tom Goeke said in a conference call to financial analysts, as Milacron reported its numbers July 28.
Goeke also said that Milacron will not be impacted by Brexit — the United Kingdom's June 23 vote to leave the European Union. The U.K. accounts for less than 2 percent of sales for Milacron, he said in response to a question from an analyst.
The Blue Ash, Ohio-based company generated second quarter sales of $308.3 million, an increase of 2.3 percent from $301.3 million in the year-earlier second quarter. The growth rate was 3.4 percent when measured on a constant-currency basis, said officials of Milacron, which has manufacturing operations around the world.
Milacron also reported second quarter net profit of $12.9 million vs. a loss of $27.2 million in the second quarter of 2015.
Orders increased by 8.5 percent, in a constant-currency basis.
Milacron, which is traded on the New York Stock Exchange, manufactures injection molding presses, blow molders, extruders and structural foam machines, as well as mold components, hot runners and coinjection molding systems. Executives said the company remains on track to the goal of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margins of 20 percent or higher by 2018.
For the second quarter, packaging enjoyed double-digit gains, and consumer products and construction showed growth, especially in North American and India, according to Chief Financial Officer Bruce Chalmers.
Goeke said Milacron is promoting a life-cycle sales approach. “In North America, our customers continue to invest to replace aging equipment,” he said.
Goeke said the medical and electronics markets declined in the period. Sales in automotive held up, but face a difficult quarter-over-quarter comparison because of a strong 2015 second quarter, he said.
Chalmers said that same comparison issue is one reason Milacron saw a slight decline in Europe in the quarter. But Goeke reported on his visit last week to customers in Europe. “They haven't put the brakes on any projects,” he said, answering an analyst's question. “Everyone had their ears open and paying attention,” the CEO said.
Milacron is facing pricing pressure on big projects in North America and on hot runners in China, Chalmers said.