A newly rebranded Myers Industries Inc. reported strong second quarter results and said it expects a significant sales boost this year from its two newest acquisitions.
Akron-based Myers, a polymer products company and specialty tools distributor, on Thursday said it had net income of $11.1 million, or 30 cents per share, on revenue of $187.4 million for the quarter ending June 30. That compares to net income of $8.4 million, or 23 cents per share, on revenue of $118.4 million a year ago.
Results beat analyst estimates. Shares of Myers Industries closed up 23 cents, or 1.1%, to $21.38. Over the past 52 weeks, shares have ranged from a low of $12.75 to a high of $23.98.
Sales growth of more than 40% expected
The company said it expects sales growth in the mid 40% range for fiscal 2021, with about half of that growth coming from its purchase of rotomolding companies Elkhart Plastics last year and then on July 30, Alliance-based Trilogy Plastics. Rotomolding is a process that uses resin and heat to make precise hollow plastic pieces.
Earnings for the year are expected to range between 86 cents and $1.01 a share, the company said, with adjusted earnings estimated to range between 90 cents and $1.05 a share.
The team’s ability to strategically manage the dynamic macro environment over the past few months is indicative of our overall strong operational performance during the first half of 2021,” Mike McGaugh, president and chief executive officer, said in a news release. “We continued to see increased demand from our core end-markets, which led to higher volumes across our business. Despite strong volume growth, our second quarter results were impacted by continued raw material inflation, which did outpace our price increases. We’ve continued to take incremental pricing actions to offset these unprecedented increases in raw material costs.”
The company continues to make progress in achieving its ‘One Myers’ strategic vision, he said.
A new master brand
Earlier in the week, Myers unveiled a new corporate brand identity.
“This new visual identity is another important step in our strategic transformation,” McGaugh said.
The new branding is intended to clearly represent the company’s comprehensive offerings and value, Myers Industries said. The changes include a new master brand, logo, and website.
“The transition to a master brand represents the next strategic step in our transformation,” McGaugh said. “It is a natural progression of our long-term vision and strategic objective to transform our Material Handling segment into a customer-centric innovator of engineered plastic solutions while continuing to grow and optimize our Distribution segment.”
Jim Mackinnon covers business. He can be reached at 330-996-3544 or [email protected]. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.