New orders in the European business rose 26% in 2003

New orders in the European business rose 26% in 2003

With 26% growth of new orders, Milacron’s European business stood out in the US group’s 2003 financial results, which continued to register large losses. New orders at Milacron’s injection and blow moulding machine business rose from $122m (E95m) in 2002 to $154m (E120m) last year. Sales were 29% higher at $151m (E118m) and operating losses were reined in to $1.4m (E1.1m).

Favourable currency rates played a large part in the European results, but Milacron also noted stronger demand in the fourth quarter for its injection moulding machines produced in Germany. In the quarter new orders and sales both had double-digit growth to $45m (E35m) and $44m (E34m) respectively. An operating profit of $1.5m (E1.2m) was a turnaround from a small loss in the third quarter.

Chairman, president and chief executive Ronald Brown said Milacron expected a “substantial improvement” in its results in the second half of 2004, and he highlighted the US economy. Following the results announcement, Standard & Poor’s lowered its corporate credit rating for Milacron from B- to CCC. The agency said ratings would be lowered again if Milacron does not meet debt repayments due in March.