Milacron has released its full year and fourth quarter results for 2018, showing it finished the year with a strong cash flow, concluding its multi-year initiative.
Sales in 2018 increased 1.9 per cent from the previous year, but sales in the fourth quarter dropped by 4.2 per cent compared to the same period a year ago.
In line with current forecasts, Milacron forecasts minus three to minus four per cent sales growth in 2019, which is inclusive of an anticipated one per cent foreign currency headwind.
On a pro forma basis, Milacron forecasts zero to one per cent sales growth in 2019, inclusive on the aforementioned foreign currency headwind.
Adjusted EBITDA margin is forecasted to be between 17.5 and 18 per cent, while free cash flow is expected to be between $100 million and $110 million.
Milacron President and CEO Tom Goeke, said: “Milacron delivered another solid year of results, meeting our sales and Adjusted EBITDA targets and exceeding our target for free cash flow. We also capped off our multi-year restructuring initiative.”
“Looking ahead to 2019, Milacron’s strategy remains unchanged and all of our growth platforms are well-positioned for growth and margin expansion.”
Bruce Chalmers, Chief Financial Officer for Milacron, said: “We delivered on our commitment for 2018 by voluntarily paying down a total of $100 million on our term loan and our net debt ration end the year at 2.9x.”
“In addition, we made significant improvements in working capital as we continue to strengthen our balance sheet. Our guidance for 2019 reflects our expectation of the impact of policy-induced trade headwinds in the first half of the year with a recovery in the second half as the headwinds recede.”