AKRON (Oct. 28, 2011)—Myers Industries Inc.'s net income more than doubled in the quarter ended Sept. 30 on higher operating income and a number of tax-related earnings gains.
Net income jumped to $7.2 million while sales edged up 1.6 percent to $190 million, including a 6-percent gain to $48.8 million by the distribution segment, which includes the company's Akron-based Myers Tire Supply unit. Operating income was up 14.4 percent to $40.2 million.
For the nine-month period, net income was up 143 percent to $18.6 million on 2-percent higher sales of $560.3 million. Operating earnings rose 68.8 percent to $28.3 million.
The distribution segment reported gains in operating income of 1.9-percent in the third quarter to $4.56 million (9.3 percent of sales) and 5.8 percent in the nine months to $11.7 million. Nine-month sales grew 6.1 percent to $136.5 million.
During the quarter the distribution segment reported an increase in new product sales and, according to the company, a broader customer base more than offset lower sales volumes. Income generated by higher sales in the quarter was offset by an unfavorable product mix and higher selling and distribution expenses, Myers said.
Also during the quarter the company purchased 1.42 million shares of stock, according to terms of a share repurchase plan approved in May, at an average price of $10.61, resulting in a cash outflow of $15.1 million. The purchases raised the number of shares bought under the plan to 1.8 million, at a cost of $18.8 million.