Milacron’s First Quarter Results In Line with Guidance

CINCINNATI, OHIO, April 30, 2007... Milacron Inc. (NYSE: MZ), a leading global supplier of plastics-processing technologies and industrial fluids, reported a net loss of $10.8 million, or $0.27 per share,* in the first quarter ended March 31. The loss included $2.4 million in restructuring charges with no tax benefit. This compared to a net loss in the first quarter of 2006 of $9.6 million, or $0.25 per share,* which included $0.6 million in restructuring costs.

Boosted by operational cost savings from restructuring and global sourcing initiatives, first quarter manufacturing margins rose to 18.7% from 16.6% a year ago, despite lower overall sales. Selling expense increased, as the company continued to expand its sales and distribution networks in faster-growing emerging markets around the world. Most of Milacron’s businesses realized earnings improvements but these were countered by weaker performances in North American injection molding related businesses, primarily the result of the ongoing consolidation among automotive suppliers as well as lower demand for building materials.

Sales in the quarter were $190 million, off from $202 million in the first quarter last year. The decline was almost entirely a result of softness in the North American market for injection molding equipment and related tooling and supplies. New orders of $208 million, down from $225 million a year ago, exceeded shipments, leading to an increase in backlog.

Net cash used by operations during the quarter was $6.7 million, in line with expectations. This compared to $4.3 million of cash provided by operations in the first quarter of 2006. Cash on hand at the end of the quarter was $35 million, and the company had approximately $38 million available for borrowing under its asset-based revolving credit facility.

“We are encouraged by the growth we are achieving from our investments to better serve emerging markets as well as our machinery aftermarket businesses in traditional markets,” said Ronald D. Brown, chairman, president and chief executive officer. “Our sales to emerging markets were up 24% over the first quarter last year, and our machinery aftermarket businesses were up 9%. These gains helped compensate, to some degree, for the weaker demand in North America.”

Segment Results

Machinery Technologies-North America (machinery and related parts and services for injection molding, blow molding and extrusion supplied from North America, India and China) Weak demand for injection molding equipment offset gains in blow molding and extrusion equipment as well as in aftermarket products and services. Consequently, sales fell to $91 million from $94 million in the same period last year, and new orders fell to $98 million from $114 million a year ago. Despite the lower sales volume, segment earnings improved to $1.8 million from $1.4 million, reflecting savings from restructuring measures implemented in 2006 as well as other cost-cutting actions taken during the quarter.

Machinery Technologies-Europe (machinery and related parts and services for injection molding and blow molding supplied from Europe) Despite favorable currency translation effects, sales declined to $34 million, $2 million lower than in the first quarter a year ago. New orders, however, rose to $47 million, up from $40 million, with about half of the increase due to currency translation. Cost savings from restructuring, as well as improved pricing, helped narrow the operating loss to $1.2 million, compared to a loss of $2.4 million a year ago.

Mold Technologies (mold bases and related parts and services, as well as maintenance, repair and operating supplies for injection molding worldwide) Sales in the quarter were $38 million, a decrease from $44 million a year ago, due in part to depressed demand from the automotive sector in North America. The effects of lower shipping volume, partially mitigated by the benefits of restructuring programs implemented in both Europe and North America during 2006, led to an earnings decline to $0.3 million from $1.9 million in the year-ago quarter. Demand for mold technologies products in North America appears to have stabilized over the past few quarters. To compensate for the decline in demand related to U.S. automakers, this segment is actively targeting other industry sectors, such as medical components, as well as suppliers to the “new domestics,” in addition to expanding sales and service networks in Asia, Mexico and Eastern European markets.

Industrial Fluids (water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide) Sales of $30 million were even with those in the year-ago quarter, as better pricing and favorable currency translation made up for a decline in shipping volume in North America, due in part to a slowdown in auto and truck component production. Aided by better pricing and lower product liability and other costs, operating earnings rose sharply to $3.3 million from $1.9 million a year ago. This segment continues to develop products for new applications in industries such as aerospace, marine engines and HVAC; and it continues to expand its sales and distribution networks in emerging markets.

Outlook

“Backlog in our machinery businesses grew by more than $20 million in the first quarter. Many of these orders are scheduled for shipment in the third and fourth quarter. So, while second quarter sales are likely to show modest improvement over first quarter levels, our backlog gives us confidence for stronger growth in the second half of the year. We continue to believe that 4% to 5% sales growth for 2007 as a whole is reasonable, with virtually all of the increase coming from outside of North America. With the benefits we are deriving from our cost-reduction initiatives, as well as the anticipated rise in shipments in the second half, we expect to see continued quarterly improvement in margins and net earnings and a better year in 2007 for Milacron,” Brown 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.

Investor Conference Call
Today at 1 p.m. EDT, 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 913-981-4905 or 800-811-8845. A recording of the conference call will be available from 4:00 p.m. today through midnight May 14 on Milacron’s website or by phone: 719-457-0820 or 888-203-1112 and providing the access code: 4276046.

First incorporated in 1884, Milacron is a leading global supplier of plastics-processing technologies and industrial fluids with 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).