Two quarters into 2011, Myers Industries Inc. appears to be on its way to a solid year. The company describes its performance as "consistent profitability."
Look at the results. In its second quarter ended June 30, 2011, Myers posted net income of $4.7 million on net sales of $176.8 million, a 2.6% income-to-revenue ratio. All three numbers were improvements over 2Q 2010.
Myers recorded similar results in the first quarter compared to the same period last year, with net income of $6.7 million (up 22%), net sales of $193.4 million (up 3.7%) and an income-to-revenue ratio of 3.4% (vs. 2.9%).
“This is the fourth consecutive quarter that we have delivered improved operating results, on an adjusted basis," says CEO and President John Orr. "Our improved results over these past four quarters demonstrate the positive operating momentum being created through the successful execution of our performance improvement plans.”
Here's a breakdown of 2Q 2011 results by segment (with last year's results in parentheses).
Material Handling: net sales, $67 million ($62.7 million). "Strong sales across all markets, especially the agricultural, food processing, and automotive markets, offset a significant drop in pallet sales in 2011 as compared to 2010," according to the company.
Lawn & Garden: net sales, $41.4 million ($45.2 million). "The decrease of 9% was mostly the result of soft consumer demand due to the weak economy and unfavorable weather conditions."
Distribution: net sales, $46.1 million ($44.0 million). "The growth in sales is mostly the result of new products sales and a broader customer base."
Engineered Products: net sales, $27.9 million ($29.7 million). The decrease "was primarily due to a temporary interruption in the transplant auto business."
Given its overall 2Q performance, the company's board of directors declared a regular quarterly dividend of $0.07 per share payable Oct. 3, 2011, to shareholders of record as of Sept. 2, 2011.
As for the second half of its fiscal 2011, Myers has an optimistic outlook. The company believes its improved operating momentum over the last four quarters demonstrates its ability "to execute the performance improvement plans initiated in the second half of 2010 as well as its longer-term strategic initiatives."
