Positive performance in its MDCS and Fluids businesses has created an upsurge in orders for Milacron in the second quarter and a marginal increase in sales. Orders rose by 3.3 per cent to $334.9 million, while sales were up 0.4 per cent on the previous year to $309.2m
However, operating earnings decreased by 19.9 per cent to $28.6m, whilst adjusted EBITDA saw a rise of 3.1 per cent to $59.6m. The US firm now also forecasts 0-2 per cent organic sales growth for the rest of 2017, which is in line with current market conditions.
Chief executive Tom Goeke said: “Milacron’s strong performance continued through the second quarter, with 1.4 per cent constant currency sales growth and adjusted EBITDA margin expansion of 50 basis points, resulting in a solid second quarter adjusted earnings per share of $0.46. Orders and sales momentum continued in the second quarter, even compared to a high prior year comp. Our outperformance has been led by our MDCS and Fluids businesses as well as our APPT aftermarket business through the first half of 2017. Year to date, organic sales are ahead 2.8 per cent and adjusted EBITDA is up 4.5 per cent versus the prior year.”
Bruce Chalmers, chief financial officer added: “The consumables portion of our portfolio posted an impressive second quarter driving overall company sales growth and margin expansion. Our free cash flow performance was below our expectations for the quarter with increases in accounts receivable and inventory. Although behind for the first half of the year, the working capital build will convert to cash before year end.”