Rising resin prices have led to plastics processors deferring capital expenditure

The rise in resin prices has battered demand for plastics processing machinery, US manufacturer Milacron said yesterday. The Ohio-based firm said to expect an $8m (E6.5m) net loss in its third-quarter results as sales in Europe and North American slumped in August and September after a strong June and July. Sales to Asia continue at strong levels, the company said.

“Milacron believes that recent rises in oil and plastic resin prices, which have significantly increased operating costs for plastics processors, have caused many processors to continue to defer spending, particularly for capital equipment,” it said.

Third-quarter sales are projected to be at least $7m (E5.6m) above last year’s figure of $170m (E137m), but will fall approximately 10% short of predications made at the end of July. The quarterly loss, which included a $2.5m (E2.0m) restructuring charge, is nonetheless an improvement over last year’s figure.