AKRON, Ohio -- Myers Industries has reported results for the second quarter ended June 30. Net sales for the second quarter were $173.2 million, a decrease of 19 percent compared to $214.6 million in the comparable quarter of 2008. The decrease is primarily the result of continued weak economic conditions in the company’s end-markets.
 
The company reported a net loss of $1.4 million or 4 cents per share in the second quarter compared to net income of $2.9 million or 8 cents per share in the second quarter of 2008. Special expenses included in second quarter results were $7.4 million in 2009 and $1.6 million in 2008.

Excluding special expenses, income, net of taxes, was $3.1 million or 9 cents per share in the second quarter compared to $3.9 million or 11 cents per share in the second quarter of 2008.

Gross profit was 24 percent in the second quarter compared to 23 percent in the same period of 2008. The increase is primarily due to favorable raw material costs, including LIFO inventory reductions, as well as continued stability of selling prices and benefits from the company’s restructuring initiatives.

SG&A declined $4.8 million in the second quarter of 2009 compared to the same period of 2008, after excluding special expenses of $7 million and $1.3 million, respectively. This reflects lower selling expenses due to reduced volumes and benefits from cost control and restructuring initiatives.

Total debt declined $21.2 million to $160.8 million in the second quarter from $182 million at March 31, due to strong cash flow from operations.

“Our second quarter earnings of $3.1 million (excluding special expenses) primarily reflect benefits from cost control, pricing stability and our manufacturing improvement initiatives,” said President and Chief Executive Officer John Orr. “Strong working capital management and a sharp focus on cash flow has further strengthened our balance sheet. This continues to position our business for growth as the economy recovers.”
 
During the second quarter, weak end-markets and demand continued to result in volume declines across the company’s segments. Customers maintained cautious spending – further reducing inventory levels, purchasing on an as-needed basis, deferring major capital investments and conserving cash.

The company said it continues to be cautious in its outlook for overall economic and end-market improvements in 2009, given the limited visibility and unsettled conditions in this recessionary climate.

During the second quarter, the company announced that it is reviewing strategic options to better align certain businesses in its Auto and Custom Segment with long-term performance and growth strategies. That review process continues, with options under consideration ranging from further internal restructuring to the sale of certain businesses in the segment. Additional details will be provided as potential actions are finalized.

A manufacturing and productivity optimization program announced in the first quarter of 2009 is underway in the Material Handling Segment. This program, expected to be completed by the end of the year, is anticipated to provide pre-tax savings of approximately $13 million to $16 million on an annualized run-rate basis.

Myers Industries said it continues to review additional operational initiatives that will strengthen its competitive position. The company anticipates strong cash flow for the year that will further strengthen its balance sheet and enable the company to capture new growth opportunities as they emerge.