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Myers Industries Q2 2023: Adapting to Challenges and Eyeing Growth
August 04, 2023
Myers Industries, Inc., a leading manufacturer of polymer and metal products, announced its Q2 2023 results, revealing a 10.6% decrease in net sales compared to the same period last year. Despite macro-economic and inflationary headwinds, the company maintained gross margins and expanded further, with self-help initiatives driving margin growth.
The company is focusing on a more variable cost structure and is well-positioned for recovery in key markets. Strong demand in agriculture, military products, and e-commerce has been noted, along with positive dynamics in the tire market due to electric vehicle growth.
To mitigate softer demand in the RV and Marine sectors, Myers has taken cost reduction actions, including deactivating a facility and driving targeted cost containment. While lowering revenue guidance for the full year, the company's earnings capability is expected to remain resilient.
The Material Handling segment saw a decrease in net sales by 17.2%, while the Distribution segment increased by 8.5%. Cash on hand totaled $30.7 million, with total debt at $88.2 million as of June 30, 2023.
CEO Mike McGaugh expressed confidence in the company's strategy and team, emphasizing the commitment to transform Myers into a high-growth organization. The company's forward-looking statements reflect a focus on sustainability, strategic growth, and adaptability in a complex operating environment.
--The Plastic Exchange
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