AKRON (Feb. 15, 2013) — Myers Industries Inc. reported double-digit gains in operating and net income for fiscal 2012 on 4.7-percent higher sales, with strong performance from the engineered products and materials-handling segments more than offsetting sales decreases in its distribution and lawn and garden segments.
Operating income grew 35.2 percent to $51.9 million for the year, while net income rose 22.5 percent to $30 million, or 88 cents per diluted share, Myers said.
Sales increased about 4.7 percent to $791.2 million. The gross margin increased one percentage point to 27.2 percent on an 8.5-percent boost in gross profit to $215.3 million, Myers said.
The firm's distribution segment — which includes Myers Tire Supply — suffered a 13.5-percent drop in adjusted income before taxes to $14.7 million and sales dropped 4 percent to $176.6 million on lower equipment sales tied to a declining replacement tire industry.
The company's fourth quarter was similarly positive, as net sales grew about 11.2 percent to $214 million compared with $192.5 million in the same period the year prior. Myers said the growth was driven by very strong performance in the materials-handing segment, which increased to $84.4 million, offsetting decreases in other segments.
Net income for the quarter was $8.5 million.
The distribution segment suffered drops in earnings and sales in the fourth quarter as well, prompted by the continued decline in demand from companies in the replacement tire industry.
Myers cited its acquisitions of Jamco Products Inc. and Plasticos Novel S.A. as the main drivers behind year-over-year sales increases for its material handling segment.
"We are pleased with our performance in 2012, particularly the strong growth we had in earns on moderate top-line growth," said Myers President and CO John Orr. "Our results continue to demonstrate the value creation impact of our innovation and operations excellence programs. Additionally, our strong free cash flow generation and balance sheet enabled us to make two key acquisitions, Novel and Jamco, which were accretive."
Mr. Orr said in the report that Myers expects another year of performance improvement in 2013.
"The year is expected to start slowly partially due to investments in information technology infrastructure and other projects," he said. "However, after the first quarter, we expect our results to improve year-o