AKRON, Ohio — Myers Industries, Inc. (NYSE: MYE) announced on Wednesday its results for the third quarter ended Sept. 30.
President and Chief Executive Officer John C. Orr said, “While Scepter's sales contribution did significantly increase our Material Handling Segment's total sales during the quarter, the segment's end markets were negatively impacted by weak sales and increased freight and distribution costs. Agricultural material handling product sales were affected by record low crop prices which drove agricultural product companies to reduce purchases of our product. Additionally, a shortened summer season for outdoor power equipment sales impacted Scepter's performance in its first quarter as part of Myers Industries. We would expect that some of these weak market conditions may continue in the fourth quarter, with a rebound in 2015.”
Orr continued, “We remain positive about 2015 and are excited to continue the transformation of Myers Industries from four disparate operating segments to two higher margin, cash producing segments, Material Handling and Distribution. This operational simplification allows for better management focus and the ability to be more balanced with respect to capital allocation. We continue to expect the sale of the Lawn and Garden business to be completed in the first half of 2015. We anticipate holding an investor day once the business is divested to give better guidance on the drivers of performance and the financial objectives of the Company.”
Net sales in the material handling segment for the third quarter of 2014 increased 25.0 percent to $112.3 million compared to $89.9 million for the third quarter of 2013 due to the acquisition of Scepter on July 2, 2014. Material Handling's adjusted income before taxes was $8.3 million for the third quarter of 2014 compared to $12.1 million for the third quarter of 2013. Decreased demand in the agriculture end market which was driven by weak commodity prices contributed to a less favorable product mix in the third quarter of 2014 compared to the third quarter of 2013. A change in customer mix and higher freight and distribution costs also contributed to the decrease in adjusted income before taxes year-over-year.
Net sales in the distribution segment were $49.9 million for the third quarter of 2014 compared to $51.7 million for the third quarter of 2013. Sales decreased year-over-year primarily due to the segment's Canadian branch closures in the first quarter of 2014 and lower custom sales. Distribution's adjusted income before taxes was $4.3 million for the third quarter of 2014 compared to $6.3 million for the third quarter of 2013. A change in product mix and higher logistics costs during the quarter contributed to the decrease in adjusted income before taxes compared to the third quarter of last year.