AKRON — Myers Industries Inc. reported 21.4% lower operating income for the quarter ended March 31 on 4.3% lower sales,
Myers cited the negative effects of lower sales volumes and a change in the sales mix for the downturn in earnings, offsetting gains attributed to pricing actions, lower raw material costs and the Mohawk Rubber acquisition.
Operating income fell to $20.3 million on sales revenue of $215.7 million, yielding an operating ratio of 9.4%, down two points from the year-ago period.
The corporate revenue decline can be attributed fully to the Material Handling segment, which suffered a 13.6% drop in revenue due to decreases in demand from the consumer, vehicle and industrial end-user markets, Myers said.
By contrast, the distribution segment — which includes Myers Tire Supply, Tuffy Manufacturing Industries and Mohawk Rubber Sales of New England Inc. — reported a 29.3% gain in revenue to $63.2 million. Business growth was driven largely by the first-time consolidation of revenue from Mohawk Rubber, acquired in June 2022.
The segment's operating income margin fell by a third to $2.2 million, or 3.5% of sales. Myers said it continues to integrate the Mohawk Rubber operations with those of the distribution segment and is implementing price increases to offset cost inflation and expand margins.
Separately, Myers disclosed that Paul Johnson, vice president of the Distribution Segment since March 2021, is planning to leave the company effective May 31. Jim Gurnee, vice president, sales, marketing and commercial excellence, will add Johnson's duties to his responsibilities, starting June 1, Myers said.
