From staff reports

Bad news for Milacron's credit

Milacron Inc.'s credit ratings were cut Tuesday by Moody's Investor Service.

Moody's cited concerns over prolonged weakness in the company's key plastics machinery markets.

The credit rating agency cut Milacron's ratings by two notches.

It said the prolonged downturn in sales has had a negative impact on Milacron's cash flow, making it more difficult for the company to refinance more than $300 million in debt coming due in March 2004 and in April 2005.

"Milacron faces a growing challenge with regard to refinancing the upcoming 2004 and 2005 principal maturities," Moody's said.

Milacron's shares closed at an all-time low of $2.40 a share on Aug. 5 after the company reported a larger second-quarter loss of $91.3 million, or $2.72 a share. The company announced plants to trim 300 jobs and didn't pay a dividend to conserve cash.

Milacron's shares closed Tuesday at $2.56, down 17 cents.

GE to make engines for Japanese military

General Electric Aircraft Engines' CF6-80C2 power plant has been picked by the Japan Defense Agency for development of its C-X next-generation military cargo aircraft.

The defense agency will take first engine deliveries in 2006.

The agreement could eventually be worth $1 billion to GE over the 30-year life of the aircraft program.

GE said the C-X will replace Japan's C-1 cargo aircraft beginning in 2011. The agency anticipates a fleet of 44 aircraft.

The GE plant previously was picked for Japan's E-767 early warning aircraft, KC-767 tanker/transport and its B-747 VIP transport.