ERJ staff report (TB)
Akron, Ohio -- Myers Industries Inc. returned to the black for 2011 with an annual net income of $24.5 million, after reporting a $42.8 million loss in 2010. Net sales edged up 2.4 percent to $755.7 million, compared with the previous year.
â€œDespite the challenges of an uncertain economy and higher raw material costs throughout most of the year, we delivered improved operating results,â€ said Myers President and CEO John C. Orr. â€œAdditionally, we once again generated strong cash flow, which was returned in part to our shareholders through the $21 million repurchase of shares which amounted to 5.7 percent of the company's outstanding stock.
â€œThe work we began in 2010 on innovation and profit improvement is paying off and positions us well for the future. We will also continue to be focused on returning cash to shareholders through dividends and timely share repurchases.â€
Myers's fourth-quarter sales rose 3.8 percent to $195.4 million, compared with the year-ago period, helping the company to regain a profit, totaling $5.9 million, after recording a loss of $50.5 million in the year-ago period.
â€œOur fourth quarter demonstrates the results of our efforts to create value through a focus on our innovation and operations excellence initiatives that we began in 2010,â€ Orr said. â€œThe new products and solutions that we are delivering generated a good portion of our sales increase in the quarter while the productivity improvements that we have made contributed to the expansion in our gross margin.â€
The company's distribution segment, which includes Myers Tire Supply, increased annual income 3.8 percent to $15.7 million on a 4.9-percent jump in sales to $183.7 million. Myers attributed the sales increase â€œmainly to the success of new product and service sales initiatives and a broader customer base.â€ But the profit was partially offset by higher variable selling and distribution expenses during the year.
During the fourth quarter, the distribution segment's income slipped 1.4 percent to $4.1 million despite a 2.1-percent rise in sales to $47.2 million, compared with the year-ago period.
Myers said it anticipates that the sales attained from the implementation of new products and solutions in 2011 will continue during 2012.
From Tire Business (A Crain publication)
Results statement from Myers Industries