Shares in Myers Industries Inc. rose Tuesday after the company released second quarter earnings and said it was making progress on improving profitability.
Akron-based Myers, which makes rubber and plastic products and distributes specialty tools, said both net income and revenue for the second quarter ending June 30 were down from a year ago.
Net income beat analyst expectations while revenue fell short.
Myers reported net income of nearly $2 million, or 7 cents per share, on revenue of $142.3 million. That compares to net income of nearly $5.5 million, or 19 cents per share, on revenue of $144.1 million a year ago.
Myers said it had adjusted earnings per share of 17 cents compared to 21 cents for the second quarter of 2016.
Shares were up 90 cents, or 5.3 percent, to $17.90 as of 1:26 p.m. Shares are up 25.2 percent since Jan. 1 and are up 19.5 percent from a year ago.
Gross profit was down largely because of restructuring and manufacturing costs in the company’s Material Handling Segment, Myers said. But sales growth in the segment was higher than a year ago, the company said, while restructuring activities temporarily increased costs in the quarter.
“We made excellent progress in the second quarter on our strategic initiatives to improve cash flow and long-term earnings potential,” David Banyard, president and chief executive officer, said in a news release. “Year-to-date, free cash flow was $21.3 million, compared to cash used of $13.6 million last year. This improvement underlines the company’s increased flexibility of operations, disciplined capital spending and focus on working capital.”
Myers said it continues to expect flat revenue for the year.
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Myers Industries shares rise on 2nd quarter earnings
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