AKRON (May 1, 2013) — Myers Industries Inc.'s first quarter net earnings fell 21.1 percent to $7.88 million despite an 8.1-percent jump in sales to $214.9 million.
Akron-based Myers attributed the surge in sales primarily to the acquisitions of two companies last year and sales increases in the Material Handling and Lawn & Garden segments that more than offset relatively flat sales in the Distribution and Engineered Products segments.
The Distribution Segment, which includes the company's Myers Tire Supply unit, recorded $42.6 million in sales, nearly on par with the year-ago quarter, while operating income dropped 19.1 percent to $2.84 million. Myers attributed the income drop to a change in product mix of equipment vs. supplies combined with planned information technology expenditures.
"In our year-end 2012 earnings release we said the first quarter of 2013 would be challenging due to investments in information technology and other projects. We continue to anticipate that our full year 2013 results should improve over 2012," President and CEO John C. Orr said.
"This improvement is driven by our efforts in cost reductions, new product innovation and increased sales."
During the first quarter, capital expenditures totaled $4.5 million and Myers said it plans to allocate $30 million to $35 million in capital expenditures for the year.
"Starting in the second quarter, we expect improved year-over-year results," Mr. Orr said. "We continue to make progress in our strategic initiatives around cost reductions, material substitutions and new product development."