Myers earnings fall on lower sales

AKRON (March 10, 2017) — Myers Industries Inc. suffered double-digit drops in operating and net income for the year ended Dec. 31, as lower sales resulted in operational inefficiencies.

Operating income fell 47.6 percent to $16.2 million on 7.2-percent lower sales of $558.1 million, yielding an operating margin of 2.9 percent. Net income was off 25.8 percent to $13.1 million.

Myers cited decreased capital spending in several of its key end markets for its lower sales.

Myers' Distribution Segment, which includes Myers Tire Supply, reported a 20.4 percent drop in operating income, to $12.8 million, on 9 percent lower sales of $170.7 million.

Myers said lower equipment sales and lower sales volume in the retread market segment — partially offset by higher pricing — led to the segment's lower sales.

The company also noted that the implementation last year of a "sales force improvement initiative" designed to broaden market coverage and improve the sales process resulted in lower sales in some territories.

Commenting on the year, Myers President and CEO Dave Banyard called 2016 a "transition period" for Myers Industries and said the company enters 2017 with a "strong enterprise strategy focused on delivering safety and efficiency solutions to our customers.

"We have established a solid foundation of operating principles within our strategy that focus on niche markets, flexible operations and strong cash flow. Instilling a culture of ownership within our team will drive execution of the strategy and help deliver strong results in the future."

The company anticipates revenue will be flat in 2017 on a constant currency basis.