AKRON (July 19, 2013) — Myers Industries Inc., parent of Myers Tire Supply, reported a 46.9-percent surge in net income for the second quarter, ended June 30, on a 12.7-percent jump in sales, compared with the year-ago period.
For the first half, Myers' net income rose 3.5 percent to $16.2 million as sales climbed 10.3 percent to $419.0 million, compared with the year-ago period. Capital expenditures totaled $10.2 million for the six months and are expect to total between $30 million to $35 million for the year, the company said.
The company attributed the income improvement in part to a "second consecutive quarter of significant profit improvement in our Lawn and Garden Segment which is reflected in the segment's year-over-year increase in adjusted income before taxes of $2.7 million," according to President and CEO John C. Orr. The company recently announced the second phase of restructuring for its Lawn and Garden segment that is expected to produce an annual savings of $8.0 million. A portion of those savings will begin to be realized in the fourth quarter of 2013, the company said.
Operating income for the Distribution Segment, which includes Myers Tire Supply, fell 10.1 percent to $3.86 million, despite a 3.9-percent increase in sales to $45.9 million for the quarter. The increase in sales was due mostly to sales of new products and market share gains in equipment sales, Myers said.
However, the segment "continues to be impacted by a slow replacement tire market. Costs associated with an upgrade in the segment's information technology system contributed to the decline in adjusted income before taxes year-over-year."
For the first half, the distribution segment's operating earnings dropped 14.2 percent to $6.7 million as sales edged up 1.9 percent to $88.5 million.