Profits Up for Milacrons Industrial Fluids


Milacrons Industrial Fluids segment on Friday reported increased profits for the fourth quarter, and for the full year.

The segment, which supplies metalworking and industrial fluids,posted a net income of $4.1 million for the quarter, up 13.9 percent from the same period in 2005. The company attributed theincreases primarily to improved pricing. Segment earnings for full-year 2006 improved 24.1 percent to $10.8 million.

The segments quarterly sales declined slightly to $29 million, down from $30 million in 2005s fourth quarter. The company said lower shipping volumes offset price increases and favorable currency translation effects.

For the year 2006, Industrial Fluids sales totaled $117 million, up from $112 million in 2005. Milacron said price increases compensated for volume declines. Industrial Fluids account for about 9 percent of the companys size, with the bulk coming from its plastics processing technologies.

Overall, Cincinnati-based Milacron reported a net loss of $8.6 million during the quarter, compared to net earnings of $5.8 million in the fourth quarter of 2005. The company said the loss included $5.1 million in restructuring costs and $1.8 million in refinancing charges.

For the year, Milacrons net loss totaled $39.7 million, including $17.4 million in restructuring costs and $1.8 million in refinancing charges. That compared to a $14 million loss for 2005.

The company has said its consolidation plan, which calls for streamlining the organization and reducing overall cost structure, is on track for completion early this year.

We have implemented temporary cost reductions, primarily furloughs, to adapt to lower shipping volumes in the first half of the year in North America, said Ronald Brown, chairman, president and chief executive officer of Milacron. For 2007 as a whole, we expect 4 percent to 5 percent top-line growth, much of it coming from emerging markets. This increase in overall volume, along with incremental restructuring benefits and other cost reductions, should lead to better operating results.

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