Milacron forecasts 0 to 2 percent organic sales growth in 2016, which it says is in line with current market conditions. Sales in 2015 rose 2.1 per cent after excluding the unfavorable effects of currency movements and the impact of tuck-in acquisitions.
Adjusted EBITDA in 2015 increased 7.5 percent while Milacron’s net loss widened to $38.8 million, or a loss of $0.65 per share,
Efforts will continue to reduce costs and to optimize the company’s global manufacturing footprint, the company reported in annual financial reports this week. In one example, certain back office functions will be shifted from a decentralized local structure to a low-cost country global shared service model. More purchasing, such as steel, will shift to low-cost country (LCC) producers.
“We source approximately 28 percent of our components and materials from suppliers located in low-cost countries and we are working toward increasing that percentage,” Milacron said in its annual 10-K statement released March 2. The company is also establishing a new lower-cost production center in the Czech Republic.
Fifty-five percent of the company’s sales are in North America, while—as of the end of last year—68 percent of its workers are located outside the United States.