AKRON (July 23, 2009)-Myers Industries Inc. fell $1.4 million into the red in the second quarter on 19-percent lower sales.
Myers blamed the results on the continued weak economic conditions in its end markets and said it is taking appropriate actions to return the company to the black.
In the auto and custom segment, Myers is "reviewing strategic options" to align its businesses with long-term performance and growth strategies. The options include further internal restructuring and the possible sale of certain businesses.
In the materials handling segment, Myers is carrying out a manufacturing and productivity optimization program that the company expects will yield $13 million to $16 million in annualized pre-tax savings.
For the quarter, Myers reported a $3.3 million pre-tax operating loss and sales of $173.2 million. For the six-month period, Myers was in the black, but net earnings of $11.5 million were 68-percent lower than a year ago. Sales were off 22 percent to $363.3 million.
In the distribution segment-which includes Myers Tire Supply-sales fell 18 percent in the quarter and half to $40.2 million and $76.5 million, respectively. Myers said this reflects weak demand from the tire and vehicle service industries.
Operating income in this segment fell 55 percent in the quarter to $2.5 million and 48 percent for the half to $4.7 million.
Commenting on the second half, Myers President and CEO John Orr said, "Strong working capital management and a sharp focus on cash flow has further strengthened our balance sheet. This continues to position our business for growth as the economy recovers."