Miserable winter weather put a chill on Myers Industries’ first quarter results while the Akron company said it expects full-year earnings to grow from 2013 levels.
The plastics maker and specialty tool distributor said it had net income of $680,000, or 2 cents per share, on revenue of $208.8 million for the first quarter ending March 31. Net income was down from $7.9 million, or 23 cents per share, on revenue of $215 million a year ago.
Myers had adjusted net income of $5.4 million, or 16 cents per share, compared to $8.1 million, or 24 cents per share a year ago.
Earnings and revenue fell below industry analyst expectations.
“Extremely poor weather conditions and transportation issues during most of the first quarter negatively impacted sales by approximately $9.8 million and net income by approximately $2.5 million or 7 cents per share,” John Orr, president and chief executive officer, said in a statement. “We lost multiple selling and production days, particularly in January and February, with our Lawn and Garden Segment being the most impacted.”
Myers stock fell $3.16, or 13.1 percent, to $20.88.
“We continue to anticipate that the company’s full year result will show another year of improved earnings,” Orr told industry analysts in a conference call. “We certainly had issues in January and February but we saw a strengthened March and for the year, expect our results to be better than last year.”
Orr said that because 80 percent of Myers Industries’ plants are in Ohio, Indiana, Michigan and Illinois, it was hurt more by the severe winter weather in the region than larger competitors that are more geographically diverse.
Second quarter earnings are expected to be better than a year ago, Orr said.
Lawn and Garden Segment sales were $49.8 million, 17.5 percent lower than $60.4 million a year ago.
Material Handling Segment sales rose 13 percent from a year ago to $90.6 million.
Distribution Segment sales totaled $39.7 million, down 6.8 percent from $42.6 million a year ago.
Engineered Product Segment sales were $32.7 million, down 11.6 percent from $37 million for the first quarter of 2013.
Jim Mackinnon can be reached at 330-996-3544 or email@example.com