July 31, 2019
Volume 3 Issue 4
Earnings Drop at Milacron, HCC
Cincinnati-based Milacron’s Fluid Technologies segment reported operating earnings of $5.6 million in the second quarter, down from $6.4 million in the year-earlier period, a 12.5 percent decrease.
Sales for the segment – which supplies metalworking and industrial fluids – dropped nearly 12 percent as well, from $33.6 million in last year’s second quarter to $29.6 million.
The company confirmed its agreement with Hillenbrand Inc., which will acquire Milacron in a cash and stock transaction valued at approximately $2 billion, including net debt of approximately $686 million as of March 31 of this year. Milacron said the transaction is expected to close in the first calendar quarter of 2020.
Heritage Crystal-Clean’s oil business segment – which includes oil collection activities, re-refining activities and sales of recycled fuel oil – posted revenues of $34.8 million in the second quarter ended June 15, down 2.9 percent from $35.9 million in the previous year.
The Elgin, Illinois-based company said the revenue decline was mainly due to a decrease in its base oil selling price, which was partially offset by an increase in the volume of base oil it sold.
"We are encouraged by the vast improvement in oil business profitability compared to the first quarter and the overall double-digit operating margin percentage,” Heritage Crystal-Clean President and CEO Brian Recatto said in the company’s earnings release. “This strong performance was mainly due to higher base oil selling prices compared to the first quarter, and record production at our rerefinery during the second quarter.”