Milacron Narrows Q3 Loss from Year Ago

CINCINNATI, OHIO, November 6, 2007...Milacron Inc. (NYSE: MZ), a leading global supplier of plastics-processing technologies and industrial fluids, today reported a net loss for the quarter ended September 30 of $4.5 million, or $1.36 per share, on sales of $204 million. This compared favorably to the company’s net loss in the third quarter of 2006 of $7.2 million, or $1.97 per share, on sales of $209 million. Restructuring costs and other non-recurring costs totaled $1.7 million in the quarter, compared to $2.9 million in the year-ago quarter.

Manufacturing margins in the third quarter improved to 19.7% from 18.7% a year ago, primarily as a result of continued cost-reduction and sourcing initiatives.

New orders of $203 million were up slightly from $201 million in the third quarter of 2006 due to currency translation effects.

Cash on hand at the end of the quarter exceeded $37 million, and Milacron had approximately $42 million available for borrowing under its asset-based revolving credit facility. The company’s liquidity (cash plus borrowing availability) rose to $79 million from $65 million at the beginning of the quarter and $72 million at the end of the third quarter last year.

“Our efforts to expand our presence in faster-growing, emerging markets continue to pay dividends,” said Ronald D. Brown, chairman, president and chief executive officer. “Our orders from these markets are up 20% year to date. Our greatest current challenge, however, is the injection molding machine market in North America, which is down 17% year to date from 2006. This also negatively impacts our mold technologies business. As a result, we are stepping up our restructuring efforts to reduce our cost structure in this market.”

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) Sales in the quarter fell to $93 million from $106 million in the same period last year, as the ongoing consolidation of U.S. automotive molders curtailed demand from that sector and contributed to the glut of used equipment, depressing the market for new injection molding machines in North America. Sales of injection machines in India remained at record-high levels, and extrusion equipment sales continued to show solid increases. Blow molding machinery sales were down in the quarter but were running slightly ahead of last year on a year-to-date basis. Cost-containment measures helped minimize the impact of the overall volume drop, as segment earnings declined to $3.8 million from $6.0 million in the year-ago quarter. New orders in the quarter were $91 million, off from $106 million last year.

Machinery Technologies-Europe (machinery and related parts and services for injection molding and blow molding supplied from Europe) Demand for injection molding machines continued to show growth in Western Europe, and, as a result, segment sales rose to $46 million from $40 million in 2006. Blow molding machine shipments were up slightly. Favorable currency translation effects accounted for about half of the segment sales gain. New orders were also $46 million compared to $31 million in the year-ago quarter, as currency accounted for about one-fifth of the increase. Higher volume and restructuring benefits aided the segment in posting a small operating profit of $0.9 million compared to an operating loss of $0.7 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) Softness in the injection molding-related markets in North America, particularly in the automotive sector, led to a slight sales decline in the third quarter to $37 million from $38 million a year ago. In Europe, our mold technologies sales were essentially flat in local currencies. During the quarter this segment accelerated its restructuring activities as it incurred a small loss of $0.4 million compared to breaking even in the year-ago quarter.

Industrial Fluids (water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide) Sales of $31 million were up from $29 million in the third quarter of 2006, with currency translation effects accounting for most of the increase. With better pricing and improved operating efficiency, segment earnings jumped to $3.5 million from $1.9 million a year ago.

Outlook

The ongoing consolidation among U.S. auto part suppliers and the depressed housing markets are major uncertainties affecting our North American injection machinery and mold technologies businesses,” Brown said. “For our part, we will continue to focus on further expansion in faster-growing markets and on cost reductions in markets where growth has slowed, and we expect to show progressive improvement in our underlying operating results in the fourth quarter.

“Looking at 2008 and the longer term, while it’s premature to offer specific guidance, we will be taking further actions to accelerate our return to profitability,” 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-Q on file with the Securities and Exchange Commission.

Investor Conference Call
Today at 1:00 p.m. ET, 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 913-312-6689 or 888-228-5287. A recording of the conference call will be available from 4:00 p.m. today through midnight November 20 on Milacron’s website or by phone: (719) 457-0820 or (888) 203-1112 and providing the access code: 9397416.

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 Milacron’s toll-free investor line: (800) 909-6452.