Myers Industries, Inc. (NYSE: MYE) today announced results for the third quarter ended September 30, 2012.
Net sales for the third quarter were $197.3 million compared with $190.3 million in the third quarter of 2011. Strong sales performance in the Engineered Products Segment combined with a sales increase in the Material Handling Segment more than offset a sales decrease in the Distribution Segment. Gross margin expanded to 26.7% in the third quarter of 2012 compared to 25.1% in the third quarter of 2011. The increase in gross margin was the result of lower manufacturing costs and improved productivity during the quarter.
Net income in the third quarter of 2012 was $5.8 million, or $0.17 per diluted share, compared to net income of $7.2 million, or $0.21 per diluted share, in the third quarter of 2011. Net income in the third quarter of 2012 included approximately $2.4 million of special net pre-tax costs while net income in the third quarter of 2011 included approximately $2.0 million of special pre-tax costs. Details regarding the special pre-tax costs for both quarters are provided on the Reconciliation of Non-GAAP Financial Measures included in this release. Net income in the third quarter of 2011 also included net favorable income tax adjustments of approximately $3.8 million for discreet items. Earnings per diluted share as adjusted for the special items and the net favorable tax adjustments were $0.20 in the third quarter of 2012 compared to $0.14 in the third quarter of 2011.
President and Chief Executive Officer John C. Orr said, “Despite current market challenges, we are encouraged by our financial performance for the third quarter of 2012. Our income before taxes improved 43.1% over last year's third quarter. This was due to a strong performance in Material Handling, including our Brazil-based Novel acquisition. We had improved results versus last year in Lawn & Garden as well. We expect that both our fourth quarter and full year performance will show improved results compared to last year. On October 2nd, we announced that we acquired Jamco Products Inc., a leading designer and manufacturer of heavy-duty industrial steel carts and safety cabinets. This acquisition further expands our Material Handling business, specifically in storage and safety products, which we have identified as a key growth platform."