MZ Milacron

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.� * (Based on the average number of shares outstanding during the quarter, without giving effect to the one-for-ten reverse stock split to be proposed and voted on at the company�s annual meeting of shareholders on May 2.) 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). Milacron Inc. and Subsidiaries � First Quarter 2007 � � � � � Three Months Ended March 31, � � 2007� � 2006� � Sales $ 190,302,000� $ 202,397,000� � Loss from continuing operations (10,663,000) (9,609,000) Per Share Basic (0.27) (0.25) Diluted (0.27) (0.25) � Loss from discontinued operations (130,000) -� Per Share Basic -� -� Diluted -� -� � Net loss (10,793,000) (9,609,000) Per Share Basic (0.27) (0.25) Diluted (0.27) (0.25) � Common shares Weighted average outstanding for basic EPS 48,973,000� 48,024,000� Weighted average outstanding for diluted EPS 48,973,000� 48,024,000� Outstanding at quarter end 55,746,000� 51,276,000� � � � � � � Notes: These statements are unaudited and subject to year-end adjustments. The common share amounts, including the weighted average outstanding shares upon which per share amounts are based, do not give effect for the one-for-ten reverse stock split to be proposed and voted on at the company�s annual meeting of shareholders on May 2. Consolidated Earnings Milacron Inc. and Subsidiaries � First Quarter 2007 � � � � � (In millions, except per-share data) Three Months Ended March 31, � � 2007� � 2006� � Sales $ 190.3� $ 202.4� Cost of products sold � 154.8� � 168.8� Manufacturing margins 35.5� 33.6� Percent of sales 18.7% 16.6% � Other costs and expenses Selling and administrative 35.3� 34.2� Restructuring costs 2.4� 0.6� Other income - net � (0.2) � (0.1) Total other costs and expenses � 37.5� � 34.7� � Operating loss (2.0) (1.1) � Interest expense - net � (7.7) � (7.6) � Loss from continuing operations before income taxes (9.7) (8.7) � Provision for income taxes � 1.0� � 0.9� � Loss from continuing operations (10.7) (9.6) � Discontinued operations - net of income taxes (a) � (0.1) � -� � Net loss $ (10.8) $ (9.6) � Loss per common share - basic and diluted Continuing operations $ (0.27) $ (0.25) Discontinued operations � -� � -� Net loss $ (0.27) $ (0.25) � (a) In 2007, represents adjustments of reserves related to prior divestitures. � � � � � � Notes: These statements are unaudited and subject to year-end adjustments. The common share amounts, including the weighted average outstanding shares upon which per share amounts are based, do not give effect for the one-for-ten reverse stock split to be proposed and voted on at the company�s annual meeting of shareholders on May 2. Consolidated Balance Sheets Milacron Inc. and Subsidiaries � First Quarter 2007 � � � � � (In millions) March 31, March 31, � � 2007� � 2006� � Assets Cash and cash equivalents $ 34.5� $ 44.6� Notes and accounts receivable-net 109.3� 119.8� Inventories 171.6� 169.0� Other current assets � 43.0� � 44.7� Total current assets 358.4� 378.1� Property, plant and equipment - net 112.5� 115.2� Goodwill 87.7� 84.3� Other noncurrent assets � 82.2� � 106.4� Total assets $ 640.8� $ 684.0� � Liabilities and shareholders' deficit Short-term borrowings and long-term debt due within one year (a) $ 32.1� $ 4.8� Trade accounts payable and advance billings and deposits 94.4� 110.8� Accrued and other current liabilities � 82.0� � 81.8� Total current liabilities 208.5� 197.4� Long-term accrued liabilities 228.5� 265.1� Long-term debt 232.6� 232.9� Shareholders' deficit � (28.8) � (11.4) Total liabilities and shareholders' deficit $ 640.8� $ 684.0� � � (a) In 2007, $28.1 million was drawn against the revolving credit facility and in 2006, there were no funds drawn against the revolving credit facility. Outstanding letters of credit were $5.6 million in 2007 and $7.9 million in 2006. � Note: These statements are unaudited and subject to year-end adjustments. Consolidated Cash Flows Milacron Inc. and Subsidiaries First Quarter 2007 � � � � � (In millions) Three Months Ended March 31, � � 2007� � 2006� � Increase (decrease) in cash and cash equivalents Operating activities cash flows Net loss $ (10.8) $ (9.6) Discontinued operations - net of income taxes 0.1� -� Depreciation and amortization 4.0� 4.1� Restructuring costs 0.3� 0.5� Working capital changes Notes and accounts receivable 4.9� (1.2) Inventories (0.3) (6.7) Other current assets (0.7) (0.1) Trade accounts payable (8.1) 8.5� Other current liabilities (1.1) 5.9� Deferred income taxes and other - net � 5.0� � 2.9� Net cash provided (used) by operating activities (6.7) 4.3� � Investing activities cash flows Capital expenditures (1.6) (3.7) Net disposals of property, plant and equipment � 0.1� � -� Net cash used by investing activities (1.5) (3.7) � Financing activities cash flows Repayments of long-term debt (0.2) (0.6) Increase (decrease) in short-term borrowings 4.3� (1.8) Dividends paid � (0.1) � -� Net cash provided (used) by financing activities 4.0� (2.4) � Effect of exchange rate fluctuations on cash and cash equivalents � 0.2� � 0.7� Decrease in cash and cash equivalents (4.0) (1.1) � Cash and cash equivalents at beginning of period 38.5� 45.7� � � Cash and cash equivalents at end of period $ 34.5� $ 44.6� � � � � � Note: These statements are unaudited and subject to year-end adjustments. Segment and Supplemental Information Milacron Inc. and Subsidiaries � First Quarter 2007 � � � � � (In millions) Three Months Ended March 31, � � 2007� � 2006� � Machinery technologies North America Sales $ 91.1� $ 94.1� Operating cash flow (a) 3.4� 2.9� Segment earnings 1.8� 1.4� Percent of sales 2.0% 1.5% New orders 97.9� 114.0� � Machinery technologies Europe Sales $ 34.4� $ 36.3� Operating cash flow (a) (0.2) (1.6) Segment loss (1.2) (2.4) Percent of sales -3.5% -6.6% New orders 46.6� 40.0� � Mold technologies Sales $ 37.9� $ 44.4� Operating cash flow (a) 1.4� 3.3� Segment earnings 0.3� 1.9� Percent of sales 0.8% 4.3% New orders 36.7� 43.7� � Eliminations Sales $ (2.8) $ (2.1) New orders (2.8) (2.3) � Total plastics technologies Sales $ 160.6� $ 172.7� Operating cash flow (a) 4.6� 4.6� Segment earnings 0.9� 0.9� Percent of sales 0.6% 0.5% New orders 178.4� 195.4� � Industrial fluids Sales $ 29.7� $ 29.7� Operating cash flow (a) 3.6� 2.3� Segment earnings 3.3� 1.9� Percent of sales 11.1% 6.4% New orders 29.7� 29.7� � Total continuing operations Sales $ 190.3� $ 202.4� Operating cash flow (a) 4.4� 3.6� Segment earnings 4.2� 2.8� Restructuring costs (2.4) (0.6) Corporate expenses (3.7) (3.3) Other unallocated expenses � (0.1) � -� Operating loss (2.0) (1.1) Percent of sales -1.1% -0.5% New orders 208.1� 225.1� Ending backlog 126.6� 116.2� � (a) Represents EBITDA (earnings before interest, income taxes, depreciation and amortization) before restructuring costs. � � � � � Note: These statements are unaudited and subject to year-end adjustments. Reconciliation of Earnings to Operating Cash Flows Milacron Inc. and Subsidiaries � First Quarter 2007 � � � � � (In millions) Three Months Ended March 31, � � 2007� � 2006� � Machinery technologies North America Segment earnings $ 1.8� $ 1.4� Depreciation and amortization � 1.6� � 1.5� Operating cash flow 3.4� 2.9� � Machinery technologies Europe Segment loss $ (1.2) $ (2.4) Depreciation and amortization � 1.0� � 0.8� Operating cash flow (0.2) (1.6) � Mold technologies Segment earnings $ 0.3� $ 1.9� Depreciation and amortization � 1.1� � 1.4� Operating cash flow 1.4� 3.3� � Total plastics technologies Segment earnings $ 0.9� $ 0.9� Depreciation and amortization � 3.7� � 3.7� Operating cash flow 4.6� 4.6� � Industrial fluids Segment earnings $ 3.3� $ 1.9� Depreciation and amortization � 0.3� � 0.4� Operating cash flow 3.6� 2.3� � Total continuing operations Net earnings (loss) $ (10.8) $ (9.6) Discontinued operations - net of income taxes (a) 0.1� -� Provision for income taxes 1.0� 0.9� Interest expense - net 7.7� 7.6� Restructuring costs 2.4� 0.6� Depreciation and amortization � 4.0� � 4.1� Operating cash flow $ 4.4� $ 3.6� � (a) In 2007, represents adjustments of reserves related to prior divestitures. � � � � � Note: These statements are unaudited and subject to year-end adjustments. Historical Information � (In millions, except per-share data) 2005� 2006� 2007� � � Qtr 1 � Qtr 2 � Qtr 3 � Qtr 4 � Year � Qtr 1 � Qtr 2 � Qtr 3 � Qtr 4 � Year � Qtr 1 � Sales $ 192.3� $ 208.8� $ 190.7� $ 217.1� $ 808.9� $ 202.4� $ 211.1� $ 209.1� $ 197.5� $ 820.1� $ 190.3� Cost of products sold 160.1� 171.0� 157.3� 174.7� 663.1� 168.8� 170.4� 169.8� 159.2� 668.2� 154.8� Cost of products sold related to restructuring -� -� -� -� -� -� 0.4� 0.1� -� 0.5� -� Total cost of products sold 160.1� 171.0� 157.3� 174.7� 663.1� 168.8� 170.8� 169.9� 159.2� 668.7� 154.8� � Manufacturing margins 32.2� 37.8� 33.4� 42.4� 145.8� 33.6� 40.3� 39.2� 38.3� 151.4� 35.5� � Other costs and expenses Selling and administrative 33.5� 33.7� 31.3� 35.3� 133.8� 34.2� 38.3� 35.3� 32.4� 140.2� 35.3� Refinancing costs (a) -� -� -� -� -� -� -� -� 1.8� 1.8� -� Restructuring costs (b) 0.4� 0.3� 0.1� 0.8� 1.6� 0.6� 8.4� 2.8� 5.1� 16.9� 2.4� Other - net (1.0) 0.2� 1.3� (0.1) 0.4� (0.1) (0.9) 0.6� 0.1� (0.3) (0.2) Total other costs and expenses 32.9� 34.2� 32.7� 36.0� 135.8� 34.7� 45.8� 38.7� 39.4� 158.6� 37.5� � Operating earnings (loss) (0.7) 3.6� 0.7� 6.4� 10.0� (1.1) (5.5) 0.5� (1.1) (7.2) (2.0) � Interest expense - net (8.2) (7.0) (7.7) (7.4) (30.3) (7.6) (7.9) (6.8) (7.7) (30.0) (7.7) � Loss from continuing operations before income taxes (8.9) (3.4) (7.0) (1.0) (20.3) (8.7) (13.4) (6.3) (8.8) (37.2) (9.7) � Provision (benefit) from income taxes 0.2� 1.0� 0.6� (5.6) (3.8) 0.9� 0.9� 0.9� (0.1) 2.6� 1.0� � Earnings (loss) from continuing operations (9.1) (4.4) (7.6) 4.6� (16.5) (9.6) (14.3) (7.2) (8.7) (39.8) (10.7) � Discontinued operations - net of income taxes (c) Net gain on divestitures -� 0.6� 0.7� 1.2� 2.5� -� -� -� 0.1� 0.1� (0.1) Total discontinued operations -� 0.6� 0.7� 1.2� 2.5� -� -� -� 0.1� 0.1� (0.1) � � � � � � � � � � � Net earnings (loss) $ (9.1) $ (3.8) $ (6.9) $ 5.8� $ (14.0) $ (9.6) $ (14.3) $ (7.2) $ (8.6) $ (39.7) $ (10.8) � Earnings (loss) per common share Basic Continuing operations $ (0.22) $ (0.12) $ (0.20) $ 0.06� $ (0.47) $ (0.25) $ (0.34) $ (0.20) $ (0.23) $ (1.02) $ (0.27) Discontinued operations -� 0.01� 0.02� 0.03� 0.05� -� -� -� -� -� -� Net earnings (loss) $ (0.22) $ (0.11) $ (0.18) $ 0.09� $ (0.42) $ (0.25) $ (0.34) $ (0.20) $ (0.23) $ (1.02) $ (0.27) Diluted Continuing operations $ (0.22) $ (0.12) $ (0.20) $ 0.04� $ (0.47) $ (0.25) $ (0.34) $ (0.20) $ (0.23) $ (1.02) $ (0.27) Discontinued operations -� 0.01� 0.02� 0.01� 0.05� -� -� -� -� -� -� Net earnings (loss) $ (0.22) $ (0.11) $ (0.18) $ 0.05� $ (0.42) $ (0.25) $ (0.34) $ (0.20) $ (0.23) $ (1.02) $ (0.27) � (a) In 2006, represents the write-off of unamortized deferred refinancing fees. � (b) In 2006 and 2007, represents costs related to the consolidation of the global mold technologies and European plastics machinery businesses to reduce their cost structures and improve customer service. In 2005, represents costs related to initiatives to reduce operating and administrative costs. � (c) All years, represents adjustments of reserves related to prior divestitures. � � Notes: These statements are unaudited and subject to year-end adjustments. The per share amounts are based on the average number of shares outstanding during the quarter, without giving effect to the one-for-ten reverse stock split to be proposed and voted on at the company�s annual meeting of shareholders on May 2. Historical Segment and Supplemental Information � (In Millions) 2005� 2006� 2007� � � Qtr 1 � Qtr 2 � Qtr 3 � Qtr 4 � Year � Qtr 1 � Qtr 2 � Qtr 3 � Qtr 4 � Year � Qtr 1 � Machinery technologies North America Sales $ 87.1� $ 95.4� $ 86.7� $ 107.3� $ 376.5� $ 94.1� $ 106.9� $ 105.7� $ 95.7� $ 402.4� $ 91.1� Operating cash flow (a) 3.5� 6.5� 5.8� 7.8� 23.6� 2.9� 6.0� 7.5� 6.8� 23.2� 3.4� Segment earnings 1.9� 4.9� 4.3� 6.2� 17.3� 1.4� 4.5� 6.0� 5.2� 17.1� 1.8� New orders 94.9� 100.7� 89.2� 97.9� 382.7� 114.0� 92.5� 105.7� 98.8� 411.0� 97.9� � Machinery technologies Europe Sales $ 34.3� $ 41.5� $ 36.8� $ 36.9� $ 149.5� $ 36.3� $ 39.9� $ 39.8� $ 37.4� $ 153.4� $ 34.4� Operating cash flow (a) (1.2) 0.6� (0.5) 0.4� (0.7) (1.6) (0.2) 0.3� 0.4� (1.1) (0.2) Segment loss (2.2) (0.5) (1.5) (0.8) (5.0) (2.4) (1.2) (0.7) (0.6) (4.9) (1.2) New orders 35.4� 42.7� 34.2� 40.3� 152.6� 40.0� 42.9� 30.9� 40.3� 154.1� 46.6� � Mold technologies Sales $ 44.2� $ 44.4� $ 40.6� $ 44.2� $ 173.4� $ 44.4� $ 38.9� $ 37.7� $ 37.8� $ 158.8� $ 37.9� Operating cash flow (a) 3.7� 2.1� 0.7� 3.4� 9.9� 3.3� 1.6� 1.3� 2.0� 8.2� 1.4� Segment earnings (loss) 2.3� 0.7� (0.7) 1.6� 3.9� 1.9� 0.3� -� 0.8� 3.0� 0.3� New orders 45.1� 43.4� 40.7� 44.5� 173.7� 43.7� 38.5� 37.7� 37.9� 157.8� 36.7� � Eliminations Sales $ (0.3) $ (0.6) $ (0.5) $ (1.3) $ (2.7) $ (2.1) $ (3.9) $ (3.2) $ (2.8) $ (12.0) $ (2.8) New orders (0.4) (0.5) (0.4) (1.0) (2.3) (2.3) (3.2) (2.7) (3.4) (11.6) (2.8) � Total plastics technologies Sales $ 165.3� $ 180.7� $ 163.6� $ 187.1� $ 696.7� $ 172.7� $ 181.8� $ 180.0� $ 168.1� $ 702.6� $ 160.6� Operating cash flow (a) 6.0� 9.2� 6.0� 11.6� 32.8� 4.6� 7.4� 9.1� 9.2� 30.3� 4.6� Segment earnings 2.0� 5.1� 2.1� 7.0� 16.2� 0.9� 3.6� 5.3� 5.4� 15.2� 0.9� New orders 175.0� 186.3� 163.7� 181.7� 706.7� 195.4� 170.7� 171.6� 173.6� 711.3� 178.4� � Industrial fluids Sales $ 27.0� $ 28.1� $ 27.1� $ 30.0� $ 112.2� $ 29.7� $ 29.3� $ 29.1� $ 29.4� $ 117.5� $ 29.7� Operating cash flow (a) 1.9� 2.4� 2.2� 3.9� 10.4� 2.3� 3.3� 2.2� 4.5� 12.3� 3.6� Segment earnings 1.4� 1.9� 1.8� 3.6� 8.7� 1.9� 2.9� 1.9� 4.1� 10.8� 3.3� New orders 27.0� 28.2� 27.1� 29.8� 112.1� 29.7� 29.3� 29.1� 29.4� 117.5� 29.7� � Total continuing operations Sales $ 192.3� $ 208.8� $ 190.7� $ 217.1� $ 808.9� $ 202.4� $ 211.1� $ 209.1� $ 197.5� $ 820.1� $ 190.3� Operating cash flow (a) 4.2� 8.5� 5.2� 12.1� 30.0� 3.6� 7.5� 7.6� 10.1� 28.8� 4.4� Segment earnings 3.4� 7.0� 3.9� 10.6� 24.9� 2.8� 6.5� 7.2� 9.5� 26.0� 4.2� Restructuring costs (b) (0.4) (0.3) (0.1) (0.8) (1.6) (0.6) (8.8) (2.9) (5.1) (17.4) (2.4) Corporate expenses (3.5) (3.0) (3.0) (3.3) (12.8) (3.3) (3.1) (3.6) (3.6) (13.6) (3.7) Other unallocated expenses (c) � (0.2) � (0.1) � (0.1) � (0.1) � (0.5) � -� � (0.1) � (0.2) � (1.9) � (2.2) � (0.1) Operating earnings (loss) (0.7) 3.6� 0.7� 6.4� 10.0� (1.1) (5.5) 0.5� (1.1) (7.2) (2.0) Percent of sales -0.4% 1.7% 0.4% 2.9% 1.2% -0.5% -2.6% 0.2% -0.6% -0.9% -1.1% New orders 202.0� 214.5� 190.8� 211.5� 818.8� 225.1� 200.0� 200.7� 203.0� 828.8� 208.1� Ending backlog 96.0� 99.2� 99.6� 92.7� 92.7� 116.2� 106.8� 98.5� 105.7� 105.7� 126.6� � (a) Represents EBITDA (earnings before interest, income taxes, depreciation and amortization) before restructuring costs. � (b) In 2006 and 2007, represents costs related to the consolidation of the global mold technologies and European plastics machinery businesses to reduce their cost structures and improve customer service. In 2005, represents costs related to initiatives to reduce operating and administrative costs. � (c) In fourth quarter 2006, includes $1.7 million for writing-off unamortized deferred refinancing fees. � � Note: These statements are unaudited and subject to year-end adjustments. Updated: April 30, 2007 � Note: The amounts below are approximate working estimates, around which an even wider range of numbers could be used for financial modeling purposes. These estimates, by their nature, involve a great number of risks and uncertainties. Actual results may differ as these risks and uncertainties could significantly impact the company's markets, products, and operations. For further information please refer to the Cautionary Statement included in Item 2 of the company's most recent Form 10-Q on file with the Securities and Exchange Commission. � Quarter Ended (In millions) � � June 30, 2007 � Projected profit & loss items Sales (1) $190 - 203� Total plastics technologies 160 - 170� Industrial fluids 30 - 33� Segment earnings Total plastics technologies 2 - 4� Industrial fluids 3 - 4� Corporate expenses 3 - 4� Interest expense - net 7 - 8� Provision for income taxes 1� Restructuring costs 1� Earnings (loss) after tax (2) (9) - (4) Average shares outstanding - basic (3) 49 - 50� Average shares outstanding - diluted (3) 107 - 108� � Earnings per share (3) $(0.23) - (0.13) � Projected cash flow & balance sheet items Depreciation and amortization 4 - 5� Primary working capital - increase (decrease) (4) 3 - (1) Cash pension contribution 0� Capital expenditures 3 - 4� Cash interest 13 - 14� Cash dividends less than 1 Cash tax less than 1 Cash refinancing fees 1� Cash restructuring 1 - 2� � 1� Increased over the same period a year ago due to the strengthening of the Euro of approximately $4 million. � 2� Includes $2.7 million of non-cash expense related to the U.S. defined benefit plan in quarter ended June 30, 2007 (versus $3.4 million in quarter ended June 30, 2006). � Includes $1.0 million of expense related to Sarbanes-Oxley compliance in the quarter ended June 30, 2007 (versus $1.1 million in quarter ended June 30, 2006). � 3� Based on number of shares before shareholders' meeting, at which a 1-for-10 reverse stock split will be voted on. � 4� inventory + receivables - trade payables - advance billings � Comments & explanations � Assumes quarter ended March 31, 2007 foreign exchange rates (e.g., USD/EUR = 1.33520), and no further acquisitions or divestitures.