AKRON (July 22, 2010) — Myers Industries Inc. suffered a $1.1 million net loss for the second quarter, compared with a $725,000 loss a year ago, despite a 6.4-percent increase in sales to $175.9 million.
However, its Myers Tire Supply distribution segment boosted its EBIT earnings 44 percent to $3.6 million on a 9.5-percent jump in sales to $44 million, compared with the year-ago quarter. The company said revenues benefited from stronger replacement tire sales.
The Akron-based company attributed its overall loss to a “rapid increase in raw material costs. Given the seasonal timing of this pressure, higher costs were not fully recoverable in the Lawn and Garden segment. This negative effect offset strong profit improvement in the Engineered Products and Distribution segments.”
For the first six months, Myers Industries' net earnings dropped 20 percent to $4.4 million as sales edged up 4.1 percent to $362.3 million, compared with the year-ago period.
For Myers Tire Supply, its EBIT income jumped 38.3 percent to $6.5 million as sales climbed 8.1 percent to $82.7 million in the first half, compared with the year-ago period.
Myers said it is reviewing several options for realigning its distribution segment operations to decrease costs and enhance customer service. The company said it would provide details in future earnings releases “as potential actions are implemented.”