Myers Industries has announced results for the first quarter ended March 31, 2016. Income per diluted share from continuing operations decreased to a loss of (11 cents) compared to a profit of 8 cents for the first quarter of 2015.
Adjusted income per diluted share from continuing operations increased 75 percent to 21 cents compared to 12 cents for the first quarter of 2015. Net sales decreased 3.3 percent (or 1.3 percent organic) compared to the first quarter of 2015.
Gross profit margin increased 260 basis points to 31.9 percent year-over-year. First quarter 2016 included estimated non-cash impairment charges of $8.5 million related to goodwill and other long-lived assets in Brazil and severance and other charges of $2 million related to the departure of the company’s chief financial officer.
President and CEO Dave Banyard commented, “First quarter sales were in line with our expectations. Operational improvements and the impact of favorable input costs contributed to the strong improvement in gross profit margin and a 75 percent adjusted earnings per share increase during the quarter. For the remainder of fiscal year 2016, we will continue to focus on executing on commercial growth initiatives in each of our businesses and developing an enterprise strategy that positions us for growth.”
Net sales in the Material Handling Segment for the first quarter of 2016 were down 3 percent (or flat organic) versus the first quarter of 2015. Strength in the vehicle end-market was offset by significant declines in the Brazil business. The segment’s adjusted operating income was $16 million for the first quarter of 2016 compared to $13.5 million for the first quarter of 2015, primarily due to favorable input costs and operational cost improvements.
Net sales in the Distribution Segment for the first quarter of 2016 were down 4 percent versus the first quarter of 2015. The decline was the result of lower sales productivity due to the implementation of a new sales team initiative during the quarter. The segment’s adjusted operating income was $2.5 million for the first quarter of 2016 compared to $3.5 million for the first quarter of 2015.
2016 Outlook
The company said it continues to anticipate total revenue to be flat to down (low-single digits) on a constant currency basis in fiscal year 2016 as the impacts of softer demand conditions persist across certain of its end-markets.
