Milacron Narrows Net Loss on Higher Sales; Outlook Remains Positive

CINCINNATI, OHIO, November 3, 2004...Milacron Inc. (NYSE: MZ) today reported a net loss of $5.5 million, or $0.20 per share, in the third quarter of 2004 on sales of $181 million. The loss included, on an after-tax basis, $2.3 million in restructuring costs and $0.4 million in refinancing costs. In comparison, in the third quarter of 2003 the company had a net loss of $67.7 million, or $2.01 per share, on sales of $170 million. The year-ago loss included, on an after-tax basis: a goodwill impairment charge of $52.3 million, $6.3 million in restructuring costs and $1.0 million in refinancing costs, as well as $2.0 million in losses from discontinued operations.

New orders in the third quarter of 2004 were $183 million, compared to $176 million in the same quarter a year ago. Orders for plastics machinery in North America accounted for most of the increase, as favorable currency translation effects offset softness in Europe.

Excluding interest, taxes, goodwill impairment, restructuring and refinancing costs, in the third quarter of 2004 earnings from continuing operations improved to $4.6 million, up from $1.7 million in the third quarter of 2003, while operating cash flow grew to $9.5 million from $6.7 million (see reconciliation tables). Despite $1.7 million of restructuring costs, manufacturing margins in the quarter were 18.9%, up from 18.3% in the same quarter last year.

"Our operational efficiencies continued to improve and consequently, even though our markets did not experience as much growth as we were anticipating, Milacron's third quarter results showed good progress on a year-over-year basis," said Ronald D. Brown, chairman, president and chief executive officer. "Increases in oil and resin prices had a clear negative impact on the economy, as well as on our customers' operating costs, delaying their plans to purchase new equipment. We remain committed to finding better ways to help our customers improve their competitiveness while improving our own performance in this challenging environment."

Segment Results

Machinery Technologies-North America  (machinery and related parts and services for injection molding, blow molding and extrusion supplied from North America and India)   Steady demand for injection molding products in several key markets - packaging, construction, automotive, medical and consumer goods - led to new orders of $80 million, up from $74 million in the third quarter of 2003.  Sales rose to $77 million, from $72 million in the same period last year. This increased sales volume, together with cost-savings from recent restructuring actions, helped improve segment earnings to $4.1 million, from $0.9 million in the year-ago quarter, despite higher pension costs.

Machinery Technologies-Europe (machinery and related parts and services for injection molding and blow molding supplied from Europe)   Demand for Milacron's European-built machinery was primarily export driven, reflecting strength in packaging, consumer goods and medical markets.  Despite favorable currency translation effects, third quarter new orders in this segment were $36 million versus $37 million a year ago.  Sales, however, rose to $38 million from $33 million last year, with about two-thirds of the increase attributable to favorable currency translation effects.  The segment loss of $0.3 million was essentially comparable to a loss of $0.4 million in the year-ago quarter.

Mold Technologies (mold bases and related parts and services, as well as maintenance, repair and operating supplies for injection molding worldwide)   New orders and sales of $40 million were essentially flat with year-ago results when excluding currency effects.  Held back by highly competitive pricing in Europe and increasing raw material costs worldwide, this segment's operating earnings nevertheless improved to $1.1 million versus $0.1 million in the third quarter of 2003, reflecting improved profitability in North America and cost reductions in Europe.

Industrial Fluids (water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide)   Sales of $27 million were essentially flat with those of the third quarter a year ago when excluding currency effects. Segment earnings declined to $2.8 million from $4.8 million a year ago, primarily as a result of rising raw material costs. To offset these higher costs, price increases are being phased in between now and year-end.

Outlook

"Our outlook for the fourth quarter and 2005 remains positive," Brown said.  "The recovery in the plastics industry is behind where most experts had predicted it would be at this time, which we attribute to rising resin prices.  However, we are encouraged by recent order trends, particularly in North America, and for 2005 we are projecting 5% to 7% overall growth in sales.

"We are also encouraged by our experience at 'K 2004,' the largest plastics trade show in the world, held in Düsseldorf, Germany last week.  At the show, we introduced a number of new, technologically advanced products, which were very well received.

"Outside of North America and Western Europe, growth continues strong, particularly in Eastern Europe and Asia, and we are rapidly expanding our presence in these markets.

"All things considered, we believe that our cost-reduction initiatives and continued improvements in operating efficiency, as well as increased sales volumes, should enable us to approach breakeven in the fourth quarter and return to profitability in 2005," he said.

The forward-looking statements above by their nature involve risks and uncertainties that could significantly impact operations, markets, products and expected results. For further information please refer to the Cautionary Statement included in the company's most recent Form 10-K on file with the Securities and Exchange Commission.

First incorporated in 1884, Milacron is a leading global supplier of plastics-processing technologies and industrial fluids, with about 3,500 employees and major manufacturing facilities in North America, Europe and Asia. For further information, visit www.milacron.com or call the toll-free investor line: 800-909-MILA (800-909-6452).

Note: At 1 p.m. EDT on 7/30, Milacron will hold an open investor conference call, which can be accessed live at www.milacron.com. The dial-in number for those interested in asking questions is (913) 981-4900. A replay of the call will be made available from 4 p.m. on 7/30 through midnight on 8/6 at www.milacron.com or dial-in at (719) 457-0820 or (888) 203-1112: access code 107530.