Myers Industries has announced results for the second quarter ended June 30, 2016.
Net sales decreased 12 percent (or 11 percent organic) compared to the second quarter of 2015. Gross profit margin was 30.9 percent, compared to 30.8 percent for the second quarter of 2015. GAAP income per diluted share from continuing operations 19 cents, compared to 35 cents for the second quarter of 2015. Adjusted income per diluted share from continuing operations 21 cents, compared to 30 cents for the second quarter of 2015.
President and CEO Dave Banyard commented, “A weakened environment for capital spending in some of our key end-markets contributed to the shortfall in sales in both the Material Handling and Distribution segments during the second quarter. Based on these results and our current indicators, we now expect full-year revenue to be down mid-to-high single digits.”
Banyard continued, “Despite the lower sales volume, we delivered solid margins and concurrently made progress on our strategic plans during the quarter. I am pleased with the extensive strategic marketing work we completed and the key initiatives we established for each of our businesses. In light of the current market environment, we are accelerating certain cost actions within those initiatives and expect to provide a more comprehensive update of our long-term strategy later this year.”
Segment Results
Net sales in the Material Handling segment for the second quarter of 2016 were down 13 percent (or 12 percent organic) versus the second quarter of 2015, due primarily to declines in the food and beverage markets. The segment’s GAAP operating income was $14.3 million for the second quarter of 2016 compared to $20.8 million for the second quarter of 2015. The segment’s adjusted operating income was $13.3 million for the second quarter of 2016 compared to $18.3 million for the second quarter of 2015.
Net sales in the Distribution segment for the second quarter of 2016 were down 11 percent versus the second quarter of 2015. The decline was primarily the result of lower equipment sales. The segment continues to implement its new sales model, which is designed to broaden market coverage and improve the overall sales process. The segment’s operating income was $4 million for the second quarter of 2016, compared to $4.5 million for the second quarter of 2015.
2016 Outlook
The company now anticipates that total revenue will be down mid-to-high single digits on a constant currency basis in fiscal year 2016 as the headwinds from a weak capital spending environment continue to impact sales performance.
