AKRON — Buoyed in part by incremental new sales from its Tuffy Manufacturing Industries Inc. subsidiary, Myers Industries Inc.'s Distribution Segment reported a 50% jump in operating income and 10% increase in sales for the quarter ended Sept. 30.
The Distribution Segment — which comprises the Myers Tire Supply auto aftermarket distribution business and Patch Rubber Co. — reported earnings and sales of $5.1 million and $45.5 million, respectively, boosting the unit's operating ratio to 12.4%.
Incremental sales from the Tuffy acquisition, completed in August 2019, contributed $2.9 million to the increase, Myers said.
The Distribution Segment's positive results helped boost Myers' overall financial picture, as the Akron-based company reported higher gross profits and sales for the period of $47.1 million and $132.3 million.
For the nine-month period, the Distribution Segment delivered 23.9% better operating income of $8.58 million on 4.6% higher sales of $121.3 million.
For the remainder of fiscal 2020, Myers said it expects improving end-market demand in the second half, plus the addition of business from Tuffy, to more than offset the first-half impacts from COVID-19.
At the same time, Myers disclosed a multi-phased strategic vision for the coming three years, dubbed "Horizon 1," focused on strengthening the company through organic growth initiatives, commercial and operational excellence, pursuing bolt-on acquisitions in value-added plastics molding and driving a high-performance culture.
The strategy is intended to transform the company's Material Handling Segment into a "high-growth, customer-centric" innovator of engineered plastic solutions, while continuing to optimize and grow the Distribution Segment, the company said in its third-quarter earnings report.
In his prepared remarks, Myers President and CEO Mike McGaugh said he is confident this plan "will advance our ability to accelerate growth, further improve our operations and deliver continued financial strength and flexibility."
The plan envisions Myers reaching $1 billion in annual sales revenue by 2023, $2 billion by 2026 and $3 billion by 2029.