Myers Sees Losses in Third Quarter
(Tire Review) Rubber, plastics and metal manufacturer, Myers Industries, Inc. reported net sales from continuing operations for the third quarter, ending 30 September, were $165.4 million, a decrease of 17 per cent compared to $199.9 million in the third quarter of 2008. The company cited continued weak economic conditions for the loss. Myers reported a net loss of $5.3 million in the third quarter compared to net income of $1.3 million in the third quarter of 2008, both including results from discontinued operations, as well as special expenses of $5.8 million in 2009 and $2.6 million in 2008.
Gross profit from continuing operations was 22.1 per cent in the third quarter compared to 23.4 per cent in the same period of 2008. The decrease is primarily due to lost absorption from lower volumes and product mix, which offset benefits from the company’s restructuring initiatives, according to Myers. Due to strong cash flow from continuing operations, the company said it was able to reduce total debt by $11.8 million to $145 million at the end of third quarter from $156.8 million at June 30, 2009.
“Although sales were down 17 per cent from the third quarter of 2008, profitability was unchanged at $3.2 million [excluding special expenses] compared to the third quarter of last year,” said John Orr, president and CEO. “This reflects our work with permanent cost reductions and benefits from our restructuring initiatives. During the quarter, we also made the decision to close two manufacturing facilities and divest two of our rubber products businesses. This continues to position Myers Industries for stronger performance as the economy recovers.”