AKRON — Buoyed by the performance of a pair of 2022 acquisitions, Myers Industries Inc. reported double-digit growth in sales and earnings in fiscal 2022 over 2021.
Operating income jumped 70.3% for the year to $83.9 million, while sales increased 18.1% to $899.5 million, elevating the operating ratio three-plus points to 9.9%.
Myers attributed its revenue growth to $64 million in incremental sales from its Trilogy Plastics and Mohawk Rubber Sales of New England acquisitions along with increased organic sales tied to higher pricing.
Myers' Distribution Segment — which includes Myers Tire Supply — reported 27.6% higher revenue of $252 million, aided to a great extent by the inclusion of six months' worth of Mohawk Rubber results. Organic sales increased 7% due primarily to higher prices.
Segment operating income increased 2.8% to $15.9 million, as the positive effects of pricing actions were offset by higher product costs and an increase in SG&A expenses, Myers said. As a result, the segment's adjusted operating income margin fell a point and half to 6.7%.
The Distribution Segment continues to implement price increases to offset cost inflation, Myers added.
Myers acquired the assets in June 2022 of Hingham, Mass.-based Mohawk Rubber Sales, a distributor of tire-repair, retreading and related supplies across traditional and online channels. The deal included distribution centers in Alpharetta, Ga.; Salt Lake City; Houston; and Hingham.
Myers said at that time that Mohawk posted revenues of approximately $65 million in 2021.
Near term, Myers is shooting for $1 billion in annual sales with an operating ratio of roughly 15%. Among its goals are additional bolt-on acquisitions in the materials-handling segment and "opportunistic" acquisition opportunities in the distribution segment.
Longer term, Myers envisions doubling in size to $2 billion in sales by 2026 and then shooting for $3 billion in sales by 2029.
