By Mike Boyer
The Cincinnati Enquirer

Milacron Inc. announced plans to cut about 300 jobs and suspended its second-quarter dividend, moves aimed at returning the plastics technology and industrial fluids maker to profitability.

The company, which has lost money for the last two years, said about 100 of the cuts would be from its Batavia-based plastic technology center and Cincinnati corporate office, where it employs about 1,000.

The remaining 200 positions will come from operations elsewhere in North America and Europe. Global employment is about 3,800.

The company will offer early-retirement incentives. That, coupled with attrition, could limit the number of employees facing involuntary termination, spokesman Al Beaupre said.

The company, which has been hurt by the continuing slump in manufacturing, said the new round of cost-cutting will reduce overhead by about $20 million annually.

The company said it will take a charge of about $10 million in the second half of the year with cash outlays of about $8 million during the next four quarters.

"While orders for most of our products have been favorable, competitive pressures continue to constrain our operating margins,'' chairman Ron Brown said.

For the three months ended June 30, Milacron reported a net loss of $91.3 million, or $2.72 a share, compared with a loss of $31.1 million, or 93 cents a share, a year ago.

The latest quarter includes a $72.2 million noncash charge against its U.S. deferred tax assets. The charge is required by accounting rules when a company has three years of cumulative tax losses, the company said.

The second quarter also included $6.3 million in after-tax restructuring charges and losses from discontinued operations of $3 million.

The loss from continuing operations in the second quarter was $9.8 million before taxes and restructuring charges, slightly larger than the loss of $8.3 million in the second quarter a year ago.

Sales for the second quarter increased 7 percent to $182 million. New orders increased 12 percent to $190 million.

E-mail mboyer@enquirer.com.