“We’re reinforcing that Milacron LLC is a world class manufacturer with a strong global presence and the products and services that customers need to be successful anywhere in the world,” said Dennis Smith, Milacron CEO. “We have a strong balance sheet, we’re generating substantial free cash flow and we’re reinvesting it back into the business – all indicators of a successful business that our customers value.”
In 2010, Milacron grew sales nearly 30% over 2009. Sales are expected to climb a similar amount in 2011 to approximately $800 million, returning the company to revenue levels greater than they were prior to the economic downturn.
New orders for the first two quarters of 2011 increased at rates comparable to the same periods in 2010. The increase in bookings was across all of its business units, Plastics Machinery, Aftermarket, DME Mold Technologies and Cimcool Fluid Technologies.
An even more important indicator of success, Milacron’s market growth is also on a steady rise. Milacron is the North American market share leader in its injection, extrusion, blowmolding machinery and mold technologies businesses. Milacron has also strengthened its position in Asia, having doubled its sales there from 7% of consolidated sales in 2006 to 16% today. The company recently doubled its Cimcool Fluid Technologies capacity in Korea and China, and also doubled the capacity of its Ferromatik Milacron India operation where it remains the injection molding market leader.
The expanded and diversified global market share lessens Milacron’s dependence on any particular market or technology. Additionally, it expands the company’s reach with products and services that enable customers to be successful anywhere in the world.
This year, the company is also on track to double its 2010 profitability – allowing the leadership team to continue to re-invest in its business units. In 2010, Milacron re-invested $10 million of capital into its businesses and anticipates investing another $20 million in 2011, as well as $10 million in research and development, primarily for new products.
“At Milacron, we know our customers are counting on us for more every day – whether they’re in injection, extrusion, blow molding, metalworking or other industries. That's why we're constantly reinvesting in the R&D, talent and technologies it takes to support our customers around the world,” said Smith. “With a heightened emphasis on innovation and product development, we’re focused on honing consistent, global product platforms that drive performance for our customers.
A considerable portion of the company’s re-investment has gone toward ensuring its manufacturing facilities are state of the art. For example, in the past two years, Milacron has approved approximately $6 million of capital expenditures for its Afton and Mt. Orab facilities to improve productivity. The company has also invested more than $10 million in its manufacturing facilities in India to enhance its capacity and reach in that region.
Additionally, Milacron has increased inventory levels for both SERVTEK, its aftermarket parts & services business, and DME Mold Technologies – enabling customers’ quicker access to parts and reduced downtime.
Milacron has also invested in strengthening its global presence in service and sales and marketing, using its worldwide expertise and resources to provide the best solutions to drive customer success. The company continues to develop international machine platforms, leveraging talents inside the organization and collaborating globally to cross-pollinate ideas.
“Our goal all along has been to increase our value to customers to help them be more,” said Smith. “We’re doing that across the map, drawing from our global network to create solutions for customers that make them successful wherever they’re located. Our strong performance is proof that our customers highly value this approach.”
Milacron employs approximately 2,800 individuals in 22 principal facilities worldwide. The company has an installed base of more than 35,000 machines and maintains 20,000 customer relationships across a diverse range of industries. Milacron products are sold in over 100 countries across six continents.