AKRON (July 26, 2000) — Myers Industries Inc., the parent company of Myers Tire Supply and tread rubber supplier Patch Rubber Co., reported lower net earnings for the second quarter despite a 12.6 percent increase sales.
Income for the period, ended June 30, fell 12.1 percent to $8.1 million, as sales improved to $166.2 million from $147.6 million a year ago.
Myers attributed much of the sales increase to three acquisitions the company made in 1999.
Excluding contributions from acquisitions, total net sales would have increased 1 percent for the second quarter and 2 percent for the year´s first half, the company said.
For the first half, Myers earnings slipped 6 percent to $16.4 million. Sales increased 19.5 percent to $327.8 million.
"The higher cost of raw materials used in our plastic products is constraining earnings right now," said Stephen E. Myers, president and CEO. Resin prices have risen, on average, more than 50 percent compared with the same period last year, the company said.
Myers said sales and income also were adversely affected by the translation effect of the weak Euro vs. the U.S. Dollar. Income was reduced $95,000 for the quarter and $168,000 for the first half. Sales were negatively impacted in the quarter by $4.5 million and $8 million for the half year, the company said.