AKRON—Myers Industries Inc.'s net income plummeted in the first quarter ending March 31 on sluggish sales, which Myers attributed to the severe weather and related issues.
Myers' net income dived 91.4 percent to $680,000 as sales slipped 2.9 percent to $208.8 million, compared to 2013. Operating income fell 80.1 percent to $2.6 million.
“Extremely poor weather conditions and transportation issues during most of the first quarter negatively impacted sales by approximately $9.6 million and net income by approximately $2.5 million or 7 cents per share,” said Myers President and CEO John C. Orr.
“We lost multiple selling and production days, particularly in January and February, with our Lawn and Garden Segment being the most impacted. Despite this difficult start to the year, the Material Handling Segment performed well and we were encouraged by our performance in March. We continue to anticipate that our full year 2014 results will show another year of improved earnings.”
When adjusting for $7.4 million in restructuring expenses and other unusual pre-tax charges, Myer's adjusted net income is reported as $5.4 million, down 32.8 percent from the year-ago quarter.
Operating income for the Distribution Segment, which includes Myers Tire Supply, dropped 16.5 percent to $2.37 million as sales slipped 6.8 percent to $39.7 million.
Myers said the segment's sales were lower as a result of poor weather and the closure of the segment's Canadian branches, which took place in the first quarter of 2014.
Myers' capital expenditures totaled $4.7 million for quarter and are forecasted to total about $35 million to $40 million for the full year.