Impact of the Tax Cuts and Jobs Act
In the fourth quarter of 2017, Milacron recorded a net income tax benefit of $8.9 million, or $0.12 diluted adjusted earnings per share, relating to the enactment of the Tax Cuts and Jobs Act. This benefit was primarily driven by the release of valuation allowances on our AMT credits and the revaluation of net deferred tax liabilities, partially offset by the recognition of withholding tax liabilities on planned cash repatriation from non-U.S. subsidiaries.Segment Results
Advanced Plastic Processing Technologies (APPT)Sales for the fourth quarter of 2017 were $190.3 million compared to $160.1 million in the same period a year ago. Excluding $4.6 million of favorable effects of currency movements, sales increased 16.0% compared to the prior year period. The operating loss for the fourth quarter of 2017 increased 168.8% to $4.3 million compared to an operating loss of $1.6 million in the prior year period. Adjusted EBITDA in the fourth quarter of 2017 increased 27.7% to $25.8 million, or 13.6% of sales, from Adjusted EBITDA of $20.2 million, or 12.6% of sales, in the prior year period.
For the year ended December 31, 2017, sales were $689.1 million compared to $663.9 million in the same period a year ago. Excluding $6.5 million of favorable effects of currency movements, sales increased 2.8% over the prior year. Operating earnings for the year ended December 31, 2017 decreased 69.6% to $10.6 million compared to operating earnings of $34.9 million in the prior year. Adjusted EBITDA for the full year increased 5.8% to $86.3 million, or 12.5% of sales, from Adjusted EBITDA of $81.6 million, or 12.3% of sales, in the prior year.
Melt Delivery & Control Systems (MDCS)
Sales for the fourth quarter of 2017 were $103.6 million compared to $101.0 million in the same period a year ago. Excluding $3.7 million of favorable effects of currency movements, sales decreased 1.1% compared to the prior year period. Operating earnings for the fourth quarter of 2017 increased 8.7% to $20.0 million compared to operating earnings of $18.4 million in the prior year period. Adjusted EBITDA in the fourth quarter of 2017 decreased 1.2% to $32.2 million, or 31.1% of sales, from Adjusted EBITDA of $32.6 million, or 32.3% of sales, in the prior year period.
For the year ended December 31, 2017, sales were $423.9 million, an increase of 8.7% compared to sales of $389.9 million in the same period a year ago. Operating earnings for the year ended December 31, 2017 increased 12.1% to $102.5 million compared to operating earnings of $91.4 million in the prior year. Adjusted EBITDA for the full year increased 8.6% to $138.2 million, or 32.6% of sales, from Adjusted EBITDA of $127.2 million, or 32.6% of sales, in the prior year.
Fluid Technologies (Fluids)
Sales for the fourth quarter of 2017 were $31.0 million compared to $28.0 million in the same period a year ago. Excluding $1.5 million of favorable effects of currency movements, sales increased 5.4% compared to the prior year period. Operating earnings for the fourth quarter of 2017 increased 40.5% to $5.9 million compared to operating earnings of $4.2 million in the prior year period. Adjusted EBITDA in the fourth quarter of 2017 increased 25.4% to $7.4 million, or 23.9% of sales, from Adjusted EBITDA of $5.9 million, or 21.1% of sales, in the prior year period.
