SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 13, 1999
MILACRON INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-8475 31-1062125
(State or other Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) No.)
2090 Florence Avenue, P.O. Box 63716,Cincinnati, Ohio 45206
(address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (513) 487-5000
ITEM 5. OTHER EVENTS
The Press Release of registrant dated December 13,
1999, filed as Exhibit 99.1 and which discloses that the
Registrant will undertake certain efficiency initiatives with
charges to be absorbed primarily in the fourth quarter of 1999
and the first half of 2000, is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS.
(c) Exhibits:
Exhibit
No. Description
99.1 Press Release issued by Milacron
Inc. on December 13, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
MILACRON INC.
Date: December 14, 1999 By: /s/ Robert P. Lienesch
Robert P. Lienesch
Vice President-Finance
and Treasurer and Chief
Financial Officer
MILACRON NEWS RELEASE
Contact: Al Beaupre (513) 487-5918
Milacron Announces Efficiency Initiatives
To Cost About $.30 Per Share in Fourth Quarter 1999
With Major Benefits Seen in 2001
CINCINNATI, December 13, 1999.Milacron Inc. (NYSE: MZ) today
announced new initiatives to improve operating efficiency and
strengthen synergies among recently acquired and existing
operations. Stressing the importance of cash flow and margin
improvement, the company said that the charge for the plan is
expected to approximate $.30 per share after tax in the fourth
quarter of 1999, with a full payback projected for 2001.
Some of the actions will take a number of months to complete and
there will be additional cash costs - up to $5 million before tax
- - to be absorbed mostly in the first half of 2000. The company
looks for some cost savings to begin in the second half of 2000
but expects to realize the full annual benefit - in the range of
$.30 to $.35 per share after tax - in 2001.
"Our core businesses - plastics technologies and metalworking technologies -
are solid and have potential for strong sales and earnings growth,"
said Ronald D. Brown, Milacron president and chief operating
officer. "To help these businesses achieve their full potential, we're
focusing intensely on integrating operations, streamlining overhead,
maximizing synergies and better managing our working capital. At the
same time, we'll be introducing a series of new higher-margin products
in 2000 aimed at key growth segments in the markets we serve," he said.
The efficiency measures will eliminate nearly 300 positions, or
3% of the company's workforce - primarily indirect and
administrative functions within both operating groups in Europe
and North America. Four small facilities - two in each group -
will be consolidated in North America as well. The initiatives
are in addition to several actions taken earlier in the year,
including the restructuring of Milacron's European blow molding
operations announced in September. In total, excluding
acquisitions, the company will have initiated worldwide
employment reductions of 9% in 1999.
"As we continue to take a cautious view of near-term
market expansion, these actions will provide a solid foundation
for sustainable growth beginning in mid-2000," said Daniel J. Meyer,
chairman and chief executive officer. "In the meantime, our
fourth quarter and year-end 1999 numbers are currently coming in
on target - at about the same level as in 1998, excluding the one-
time charge, of course.
"The outlook for 2000 is mixed," Meyer said. "The North American
economy is healthy but expanding less rapidly. Markets in Japan
and Southeast Asia appear to be recovering, but slowly. And,
despite improved business levels in Germany in recent months, we
expect Europe overall to remain relatively soft and we're
focusing on operational efficiencies there.
"All in all, we're counting on only marginal improvement in
demand for our products on a global basis in 2000. Nevertheless,
thanks to our heavy new-product introduction schedule, we expect
to grow sales in our plastics businesses by about 8%, while on
the metalworking side, where several industry segments remain
weak, we're planning on about a 4% increase, including some
recent small acquisitions.
"Even at these reduced sales levels, with only a modest net
benefit from the efficiency improvements in the first year, we
believe that Milacron can still achieve our previously stated
estimate of 10% to 12% earnings growth in 2000 over our 1999
results excluding the fourth-quarter charge. And in 2001, with
the full benefit of our streamlining actions and the momentum of
many new product introductions, we should be well positioned for
a solid 15% or greater EPS growth over 2000," Meyer concluded.
The above forward-looking statements by their nature involve
risks and uncertainties that could significantly impact
operations, markets, products and expected results. For example,
the above forward-looking statements make certain projections
relating to the introduction of new products, which may be
impacted by the level of consumer demand for such products and
other factors. For further information please refer to the
Cautionary Statement included in Item 2 of the company's most
recent Form 10-Q on file with the Securities and Exchange
Commission.
Milacron is a world leader in plastics processing and
metalworking technologies. With estimated 1999 sales of $1.6
billion, the company has major manufacturing facilities in North
America, Europe and India. Plastics technologies include
injection molding, blow molding and extrusion systems, mold bases
and mold-making equipment and components, and aftermarket/MRO
parts and services. Metalworking technologies include carbide
metalcutting inserts, insert holders, carbide and high-speed
steel round tools, metalworking fluids, chemical and tool
management services, grinding wheels and carbide wear parts.
