AKRON (March 9, 2009)—Myers Industries Inc. suffered a net loss of $46.2 million last year on 5.9 percent lower sales of $918.8 million, although management attributes the loss to one-time special items.
“Despite the severe economic downturn and decline in demand during the fourth quarter, we are reporting positive operating results, exclusive of special items, for both the fourth quarter and full year,” President and CEO John Orr said.
He said the company focused on product pricing, reducing expenses, developing new channels for growth and maximizing cash flow.
“Our actions will enable us to emerge stronger and to capitalize on new business and pent-up opportunities when the economy begins recovery.”
Myers noted its fiscal net loss includes $60.1 million in goodwill impairment charges and $8.6 million in restructuring-related expenses.
The firm's distribution segment—which includes Myers Tire Supply, the distributor of tire shop equipment and supplies—reported 14.6 percent lower operating income of $17.5 million on 7.9 percent lower sales of $187.1 million.
Revenue fell as a result of the reduction in tire sales and slow tire service demand across all major markets, driven by lower consumer miles driven, a steep decline in housing construction—impacting construction vehicle use and maintenance needs —and a shift to just-in-time ordering of consumable service supplies and decline in capital spending for service equipment as tire dealers and other industry service providers faced weakening demand from their customer base.
For 2009, Myers will continue to focus on strengthening niche-market positions; improving manufacturing and distribution structure to reduce costs and increase productivity; and capitalizing on opportunities for sustainable, profitable growth.
Short-term, Myers has instituted a company-wide freeze on wages, merit increases and hiring.