For the fourth quarter of 2022, Myers Industries posted a record $212.84 million in net sales — an increase of 6.6% compared to a year ago, primarily tied to $17 million in incremental sales from the Mohawk Rubber acquisition. Gross profit rose 25.6% to $65.07 million, and gross margin grew from 26.0% to 30.6% on a year-over-year basis. The company’s net income climbed 85.1% to a record $13.43 million.
A closer look shows that distribution segment sales rose 35.0% to $70.60 million in the fourth quarter of 2022. Excluding incremental net sales from the acquisition of Mohawk Rubber, segment organic net sales increased 2% mainly due to higher pricing.
However, distribution segment operating income declined 37.2% to $3.40 million, with adjusted operating income down 24.0% to $4.10 million and adjusted operating income margin down 450 basis points to 5.8% as the contribution from higher pricing wasn’t enough to offset higher product costs and increased expenses year over year.
The segment continues to implement price increases to offset escalating product costs.
The distribution segment is engaged in the distribution of tools, equipment and supplies used for tire servicing, wheel and automotive under-vehicle service on passenger, heavy-truck and off-road vehicles as well as the manufacturing of tire repair material and custom rubber products.