Akron manufacturer and specialty tool distributor Myers Industries Inc. lost money in its fourth quarter but still showed a profit for its full fiscal year.
Myers, which makes plastic and rubber containers and related products, also said it will begin consolidating its Material Handling division this year and make other changes as it continues to refocus the company.
Myers Industries lost $1.46 million, or 5 cents per share, on revenue of $130 million for the quarter ending Dec. 31. That compares to net income of $771,000, or 3 cents per share, on revenue of $139.2 million a year ago.
Shares of Myers Industries were up 5 cents, or 0.4 percent, to $13.40 as of 1:32 p.m. Revenue beat analyst estimates while net income fell short by a penny.
“Fourth-quarter results were in line with our expectations as we faced the continued impact of a reduced capital spending environment that persisted across many industrial markets for most of 2016,” Dave Banyard, president and chief executive officer, said in a statement.
“Demand in agriculture markets has been notably weak with record sales declines in some channels over the previous two years. Some of our most strategic products sell into these customers,” Banyard said. “While we are disappointed with our sales performance during the year, we managed costs well and made tangible improvements in the management of working capital and capital spending, both of which will continue to be part of our strengths moving forward.”
For the full year, Myers Industries had net income of $1.06 million, or 3 cents per share, on revenue of $558.1 million. That compares to net income of $17.8 million or 57 cents per share, on revenue of $601.5 million for fiscal 2015.
Banyard called 2016 “a transition period” for the company.
“We’ve already made several important structural changes to the business, including solid working capital improvements in each business and a 15 percent reduction in corporate headcount during the fourth-quarter of 2016,” he said. “In 2017 ... we will begin a consolidation of our manufacturing footprint in Material Handling that we expect to complete by year-end, and we will also be evaluating potential new sourcing partnerships as we seek a more flexible operating model.”
Myers Industries said it expects 2017 revenue will be about the same as in 2016.
The company said its enterprise strategy is centered on a niche market focus, flexible operations, and strong cash flow growth.
Myers Industries also will pay a dividend of 13.5 cents per share on April 4 to shareholders of record as of March 17.