Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Videos
    • Podcasts
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Notable Leaders in Sustainability
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics Caps + Closures: A Global Online Event
    • Women Breaking the Mold Networking Forum
    • Bioplastics Live
    • Numbers that Matter Live
    • PFAS Live
    • Plastics in Politics Live
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Resin Prices Overview
    • Commodity Thermoplastics
    • High Temperature Thermoplastics
    • Engineering Thermoplastics
    • Recycled Plastics
    • Thermosets
    • Europe - Virgin
    • Europe - Recycled
    • Europe - Feedstock
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
July 30, 2019 01:15 PM

Milacron keeps mum on Hillenbrand deal in second quarter results

Audrey LaForest
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Joe Wilssens
    Milacron CEO Tom Goeke at NPE2018.

    Executives at Milacron Holdings Corp. remained tight-lipped on any new details regarding the July 12 announcement that Hillenbrand Inc. is buying the company.

    Milacron President and CEO Tom Goeke told analysts July 30 in a second quarter earnings call that the company would not be taking any questions related to the transaction.

    The blockbuster cash and stock deal is valued at about $2 billion, including net debt of approximately $686 million, and is expected to close in the first quarter of 2020 if approved by Milacron shareholders.

    "Our board carefully and thoroughly reviewed the strategic and financial merits of this combination and unanimously concluded that this transaction represents a unique opportunity for Milacron," Goeke said during the conference call.

    As part of the merger, Milacron shareholders will receive $11.80 in cash and a fixed exchange ratio of 0.1612 shares of Hillenbrand stock for each share of Milacron stock they own. Under terms of the agreement, Hillenbrand shareholders will own approximately 84 percent of the combined company and Milacron shareholders will own about 16 percent.

    Both companies are traded on the New York Stock Exchange.

    Shares of Milacron opened at $16.83 and were trading down 0.36 percent to $16.73 during morning trading hours. Hillenbrand shares opened at $34 and were trading down 1.2 percent at $33.70. Overall trading on the stock exchange was slightly down for the morning hours on July 30.

    "In Hillenbrand, I believe we have found a tremendous partner," Goeke said. "Our goal at Milacron has always been to provide our customers with innovative products across our critical plastics and fluid technologies. Together with Hillenbrand, we will be able to continue delivering breakthrough products and customized systems to existing and new customers, and strengthen our service platforms and distribution capabilities."

    Hillenbrand, based in Batesville, Ind., is the parent company of compounding extruder maker Coperion and auxiliary equipment firms K-Tron and Rotex. It is also the manufacturer of burial caskets under the 100-year-old Batesville Casket brand. Hillenbrand went public in 2008 and has been diversifying into industrial machinery.

     

    Headwinds for sales

    In other news, Milacron reported second quarter sales of $271.4 million, a decrease of 10.6 percent from sales of $303.6 million in the same period a year ago. Compared with the first quarter of 2019, sales were up about 9 percent.

    Net profit, including the loss from discontinued operations, was $4.1 million. Operating profit slumped by 33.3 percent to $23.8 million compared with the same period last year.

    Goeke said the second quarter of 2018 was a record quarter for the company, creating a tough year-over-year comparison.

    "As previously discussed, 2018 was best characterized as 'a tale of two halves,' with very solid growth in the global economy during the first half of the year and the introduction of policy-generated headwinds in the second half that have carried into 2019," Goeke said.

    Those headwinds include tariffs and global trade tensions that have clawed at China's economy and clipped into Milacron's results. But despite the uncertainty, Goeke said the second quarter results are "in line with our expectations," and he is optimistic the second half of the year will show improvement, as it did in 2018.

    "It's definitely tough," he said of the current environment. "We're slugging it out. And part of it is winning new customers, part of it is new product development launch, and then the balance is recurring business."

    New orders of $235.7 million declined 26.4 percent in the second quarter of 2019 compared with $320.1 million in the prior-year period.

    Goeke, answering a question from an analyst, attributed the slip to a delayed payment schedule from machinery customers in North America and India that should flow into the third quarter. It is "no loss of orders," he said.

    The Melt Delivery and Control Systems Unit, which includes hot runners, mold bases, components, parts service, retrofit and remote monitoring, fell about 16 percent to $103.9 million of sales in the second quarter compared with the prior-year period.

    Within the unit, its Mold-Masters brand of hot runners and process control systems posted increases in orders from the first quarter of 2019 in nearly all end markets, but primarily driven by electronics, medical and packaging, the company said.

    The machinery segment, called Advanced Plastic Processing Technologies, reported second quarter sales declined nearly 5.5 percent to $137.9 million from 2018's second quarter sales of $145.9 million.

    Earlier this year, on July 1, Milacron completed the nearly $52 million sale of its Uniloy blow molding machinery business to two private equity firms, Osgood Capital LLC and Cyprium Investment Partners LLC. The business, formerly a part of the APPT unit, is now considered a discontinued operation. The $52 million was applied toward a debt repayment totaling $57 million.

    Geographically, in net sales, the company reported "strong sequential improvement" in both North America and China in the second quarter, according to Bruce Chalmers, Milacron's chief financial officer.

    "From an end-market perspective, packaging, construction and medical all did well in the quarter both vs. prior year and sequentially," he said.

    Second quarter orders in China, specifically, increased in all business segments, including Fluid Technologies, which has the Cimcool product line of fluids for metalworking. Sales in the unit were $29.6 million compared with $33.6 million in the same period a year ago — a decrease of nearly 12 percent.

    "As a reminder, we based our 2019 annual guidance on the assumption that the policy-induced trade headwinds subside midyear and create a dynamic that is the opposite of [fiscal year 2018], with some sequential weakness in the first half and a stronger second half," Chalmers said. "Thus far, we are tracking with these expectations and remain attentive to the inflection points underpinning our forecast for the remainder of the year."

    RECOMMENDED FOR YOU
    Auto suppliers plan for uncertainty amid UAW strike, shift to EVs
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    An 8,000-ton dream for Milacron, 20/20 Custom Molded Plastics
    2
    Connecticut AG probes recycling claims on HDPE toothpaste tubes
    3
    ACC campaign targets Biden administration's 'troubling' policies
    4
    PureCycle declares force majeure following production problems
    5
    M. Holland selling 3D business after Ravago deal
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Find more newsletters at plasticsnews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Notable Leaders in Sustainability
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Videos
      • Podcasts
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics Caps + Closures: A Global Online Event
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
      • Editorial Livestreams
        • Bioplastics Live
        • Numbers that Matter Live
        • PFAS Live
        • Plastics in Politics Live
        • PN Live: Mergers and Acquisitions
        • Polymer Points Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Resin Prices Overview
      • Commodity Thermoplastics
      • High Temperature Thermoplastics
      • Engineering Thermoplastics
      • Recycled Plastics
      • Thermosets
      • Europe - Virgin
      • Europe - Recycled
      • Europe - Feedstock
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified