Myers Industries Inc. on Wednesday reported a decline in profits for the first quarter, as anticipated.
The Akron maker of rubber and plastics products said Wednesday that its net income in the first quarter of 2013 was $7.9 million, or 23 cents a share. That’s down 21 percent from $10 million, or 29 cents a share, in the first quarter of last year.
Shares closed down 13 cents to $13.97. The stock is down 7 percent, including dividends, since Jan. 1, and down 13 percent from a year ago.
Myers President and Chief Executive Officer John C. Orr noted in prepared remarks that the company had said earlier that this year’s first quarter “would be challenging due to investments in information technology and other projects.”
Orr said that the company continues to anticipate that results for the full-year 2013 will improve over those of last year.
Myers said net sales in the first quarter of 2013 rose 8.1 percent, primarily attributable to last year’s acquisitions of Novel and Jamco.
Sales rose to $215 million from $198.8 million in the first quarter of 2012.
Novel is a Brazilian injection molding business that designs and manufactures plastic totes and crates used for shipping and storage in food and agricultural industries. Jamco, with manufacturing facilities in South Beloit, Ill., designs and manufactures industrial steel carts and safety cabinets.
Orr noted in his prepared remarks that adjusted profits for the company’s lawn-and-garden segment improved 125 percent this quarter. The segment makes a variety of plastic containers for greenhouses, nurseries and retail garden centers and includes part of its Akro-Mils brand, with a 100-employee plant in Wadsworth.
Myers said in February that it planned to invest $5 million in this underperforming segment while not ruling out other options for the unit, including a sale.
The company said Wednesday that profits in this segment rose to $2.7 million, up from $1.2 million for the first quarter of 2012. Sales in this segment were $60.4 million, compared to $59.2 million for the first quarter of 2012.
Myers said sales of its material handling segment for the first quarter of this year rose to $80 million, compared to $65.2 million for the first quarter of 2012. Income before was $9.9 million, down from $13.2 million a year ago.
Sales in Myers’ distribution segment were $42.6 million for the first quarter of 2013 compared to $42.7 million a year ago. Income dropped to $2.9 million from $3.9 million a year ago. The company said planned information technology expenses played a role in the decrease.
Sales in the company’s engineered products segment were $37 million, down from $37.2 million a year ago. This segment’s income for the first quarter was $5.1 million, up from $4.7 million a year ago. Cost reductions drove the increase, the company said.
Myers has said earlier Jamco’s product lineup complements its existing Akro-Mils business.
Workers at the Akro-Mils plant make plastic storage bins and metal carts, among other products.
Myers’ local employment is comprised of the employees in Wadsworth and at the company’s corporate offices on South Main Street in Akron.
Myers’ annual meeting will be Friday at the company’s Louis S. Myers Training Center, 1554 S. Main St. in Akron.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com.