The company had forecast a loss of between $1 million and $8 million. Milacron's shares closed Thursday at $3.12, down 10 cents.

The company, which will report third-quarter results on Nov. 3, said higher oil and plastics resin prices have caused plastics processors to curtail purchases of the injecting molding equipment it produces.

Sales for the just-completed quarter are expected in the range of $177 million to $182 million, up from $170 million a year ago but below its previous guidance of $188 million to $200 million. In the third quarter last year, Milacron reported a loss of $67.7 million, or $2.01 a share, after charges.

Strong orders in June and July were offset by "exceptionally weak orders in August," Milacron said. September orders remained soft in Europe, improved in North America and were strong in Asia, the company said.

Analysts said Milacron wasn't the only provider of injection molding equipment feeling the sting from higher oil and resins prices.

Shares of Canadian-based Husky Injection Molding Systems Ltd., fell almost 6 percent last Friday after it reported weaker-than-expected fourth-quarter results.

For the fourth quarter, Milacron said it expects to break even on sales of $195 million to $200 million. Analysts had expected the company to earn about 8 cents a share in the three months ending Dec. 31.

The drop in sales is the latest setback for the 120-year-old Cincinnati manufacturer, which completed a major financial restructuring last spring.

The company averted possible bankruptcy reorganization with $100 million in new equity from two European investors.

Based on current projections, Milacron said it is unlikely to generate $50 million in adjusted earnings before interest, taxes, depreciation and amortization for the year.

If that were the case, it would trigger a reset of its Series B convertible preferred stock to $1.75 a share from $2 a share. That would increase the number of shares outstanding on a converted basis to 93 million from 86 million.

The company said its asset-based credit agreement also has been amended to reflect lower earnings expectations in the third and fourth quarters.

E-mail mboyer@enquirer.com