AKRON, Ohio (April 23, 2003)—Myers Industries Inc., parent company of Myers Tire Supply and Patch Rubber Co., suffered a 28.4-percent drop in net income in the first quarter despite a 9.6-percent jump in sales, as rising raw materials costs ate into margins.
Net income slipped to $7.19 million while sales improved to $163.2 million, dropping the earnings ratio two full points to 4.4 percent.
Sales in the distribution segment were on par with 2002 first quarter results, as tire and vehicle service customers limited their spending for supplies and equipment during the quarter, reflecting a normal seasonal factor, Myers said.
“Although we achieved gains in sales, price increases for plastic resins reduced gross margins. Strong competition and excess capacity in the marketplace made it difficult to raise product pricing," said Stephen E. Myers, president and CEO.
“In this challenging environment, we are taking appropriate steps to mitigate pressure on margins,” said Chief Financial Officer Greg Stodnick. “However, those efforts will necessarily take time to achieve full effect. We remain sharply focused on disciplined asset management and operational efficiency to strengthen our position for improved performance.”