Unhappy Milacron shareholders seek answers
Source: Bizjournals.com (Original Article)
Milacron Inc.’s Chairman and CEO Ron Brown told shareholders Thursday morning that the company’s return to profitability depends on continuing the path it’s been on for several years, cutting costs and pursuing growth outside its traditional markets in the United States and Western Europe.
The Cincinnati-based manufacturer of plastic-processing machinery and metalworking fluids held its annual shareholders meeting at its Walnut Hills headquarters. Shareholders elected or re-elected seven directors, six of whom are investment professionals with Miami, Fla.-based H.I.G. Capital, which acquired control of Milacron in 2007. The private equity investment firm owns most of Milacron’s Series B convertible preferred stock, holders of which elect a majority of the board.
With Thursday’s election, the size of the board was reduced from 13 to 11 members. Six-year board member Chuck Turner, a former employee, attended his last annual meeting as a director, and his departure marked the end of 124 years of Geier family representation on the board. Turner is a great-grandson of Milacron founder Fred Geier and a nephew of longtime CEO Jim Geier.
Brown turned 55 Thursday and announced last month that he will retire by the end of the year after 28 years with Milacron. He outlined the company’s improved operating performance in 2007 and the first quarter of this year and said continued improvement would require further actions to lower its costs in North America and increase manufacturing capacity in emerging markets such as China and India.
The company is building a blending plant in China for its profitable metalworking fluids business, he said, but on the other hand it expects the production of plastic parts to decline slightly in the United States this year because of slumps in the housing and automotive sectors.
Asked by a shareholder if he could predict when the company would return to profitability, Brown Accountants in NSW beginning with V said, "I can, but I can’t." …continue reading