Selected Exhibits from Husky Injection Molding Systems

Case Software 2-703-757

Copyright © 2003 by the President and Fellows of Harvard College

This case was prepared as the basis for class discussion rather than to
illustrate either effective or ineffective handling of an administrative situation.
Exhibit 1: Size of Market for Injection Molding Equipment and Services by Application (US$ mm)

Application Typical end-product 1993 1994 1995 1996E 1997E 1998E Major competitors
PET packaging Soda bottle $346 454 755 649 1,004 1,153 Husky, Engel, Van Dorn, Toshiba, Netstal, Cincinnati
Milacron, Electra Form, Otto Hofstetter
Containers Yogurt cup $301 321 346 368 391 416 Husky, Engel, Cincinnati Milacron, Krauss Maffei,
Netstal
Closures Bottle cap $208 228 254 278 306 336 Husky, Engel, Cincinnati Milacron, Krauss Maffei, Van
Dorn
Automotive Bumper $3,283 3,402 3,563 3,688 3,817 3,951 Cincinnati Milacron, Krauss Maffei, Ube, Engel
Technical Electrical connector $9,876 10,288 10,806 11,238 11,687 12,155 Arburg, Engel, Krauss Maffei, Sumitomo, Netstal,
Cincinnati Milacron
Other $3,005 3,102 3,247 3,346 3,448 3,553
Total $17,018 17,793 18,971 19,566 20,653 21,565
Exhibit 2: Size of Market for Injection Molding Equipment and Services by Product (US$ mm)

Product category 1993 1994 1995 1996E 1997E 1998E Major competitors
Small-tonnage† machines $1,639 1,704 1,773 1,840 1,910 1,984 Arburg, Engel, Krauss Maffei*, Sumitomo, Netstal*, Cincinnati
Milacron
Medium-tonnage† machines:
PET preform $156 205 316 248 413 475 Husky, Engel, Van Dorn*, Toshiba, Netstal*, Cincinnati Milacron
Thinwall $42 43 45 47 48 50 Husky
Other medium-tonnage $1,967 2,046 2,128 2,209 2,293 2,381 Engel, Cincinnati Milacron, Van Dorn*, Toshiba, Krauss Maffei*
Large-tonnage† machines $492 511 532 552 573 595 North America: Cincinnati Milacron, HPM, Van Dorn*Europe:
Krauss Maffei*, Battenfeld, Engel, Sandretto, MIRAsia: UBE,
Mitsubishi, Toshiba, Meiki
Machine subtotal $4,294 4,509 4,793 4,895 5,237 5,484
PET preform molds $144 189 303 285 397 456 Husky, Electra Form, Otto Hofstetter, R&D Tool & Engineering
Other molds $11,553 12,012 12,491 12,969 13,468 13,986 Numerous competitors in particular niches
Hot runners $443 469 536 552 601 639 Husky, Mold Masters, D.M.E.**, Dynisco (Eurotool, Kona)
Robotics $583 615 656 667 743 784 Wittman, Sepro, Star, Yushin, Engel
Value added services $176 183 191 199 207 215
Total $17,018 17,793 18,971 19,566 20,653 21,565

† Small-tonnage machines have less than 150 tonnes of clamping force; medium-tonnage machines, 150-900 tonnes;
and large-tonnage machines, more than 1,000 tonnes
* Member of the Mannesmann Group ** D.M.E. owned by Cincinnati Milacron
Exhibit 5: Financial Results of Husky Injection Molding Systems

Revenue Net income EOY Assets Return on Return on

Year (US$ mm) (US$ mm) (US$ mm) sales (%) equity (%)
1988 127.6 4.6 66.4 3.6 39.9
1989 146.4 6.4 87.7 4.4 40.5
1990 173.4 2.1 120.1 1.2 5.0
1991 189.2 (5.7) 114.5 (3.0) -15.9
1992 250.1 12.8 147.2 5.1 27.7
1993 307.9 16.3 186.0 5.3 27.1
1994 398.1 25.1 282.7 6.3 30.1
1995 608.7 50.1 443.1 8.2 37.8
Exhibit 6: Comparison of Preform Systems

Husky Major Competitor

System PET preform system producing 48 preforms PET preform system producing 48 preforms
per cycle, for production of 20-ounce soft drink per cycle, for production of 20-ounce soft drink
bottle bottle

Cycle time 10.4 seconds 11.8 seconds

Average operating hours per day 22.3 hours 18.9 hours

Weight of preform
Average 24.39 gm 24.42gm
Standard deviation 0.16 gm 0.16 gm

Floor space occupied 343.1 square feet 351.8 square feet

Electricity consumption Husky system used 0.137 kWh less of electricity per kilogram of preforms produced. Cost of
electricity = 8¢ / kWh

Number of surface blemishes visible on preform body ~ 5-10 ~ 50

Pressure required to burst bottle

Average ~ 205 psi ~ 205 psi
Standard deviation ~ 5 psi ~ 20 psi

Approximate purchase price $1.2 million $1.0 million

Trabajo en Segundos/dia 80280 68040
Ciclos diarios 7719.230769 5766.101695
Preformas producidas dia 370523.0769 276772.8814 1.3387260887 $1,338,726.09
$1,200,000.00
Precio * Kg 1.3 $ 138,726.09
Preformas por kg 41.00041 40.95004095 $ 5,274.40
Costo por preforma $ 0.03 $ 0.03 $ 36,151.85
Costo diario 11,748.18 8,786.43 2,961.74 1,081,036.31 $ 6,264.00
$ 186,416.33 $1,386,416.33
$ 932,081.65
$1,118,497.99

9037.057846 6758.793763

722.9646277 540.703501
623.9184737