Myers Industries Reports 2010 Third Quarter Results

“I am pleased to report improved sales and earnings performance in the third quarter,” said President and Chief Executive Officer John C. Orr. “All of our segment operating teams worked hard to improve performance, and their dedication has translated into a significant increase in sales and income. Going forward, we will continue to focus on improving margins in an extremely volatile raw material environment. In addition, we continue to emphasize reducing operating expenses and improving productivity throughout the business.”

Third Quarter Ended September 30

Third Quarter Ended Sept. 30

Third Quarter Ended Sept. 30

2009

% Change

2009

% Change

During the third quarter, volumes continued to improve across the business. The Material Handling Segment had sales growth from reusable bulk containers in agriculture, food and manufacturing applications, as well as continued placement of new products and line extensions with industrial catalogers. In the Lawn and Garden Segment, demand for containers through distributor programs boosted sales. In the Distribution Segment, sales of tire service supplies remained strong and were favorably influenced by replacement tire sales and vehicle service demand. Sales in the Engineered Products Segment increased primarily on favorable demand and pricing in recreational vehicle and automotive markets.

While raw material cost increases moderated somewhat at the beginning of the third quarter, costs for plastic resins increased in the last month of the quarter. On average, raw material costs were nearly 20% higher compared to the third quarter of 2009.

Income before taxes in the Material Handling and Engineered Products Segments posted strong improvements through favorable volume, mix, pricing and productivity improvements. In the Lawn and Garden Segment, pricing combined with volume, product mix and restructuring benefits improved the segment’s performance compared to the second quarter of 2010. However these benefits were not sufficient to offset higher material and freight costs in the third quarter. Distribution Segment income before taxes was down slightly compared to the third quarter of 2009, as favorable supply sales were partially offset by pricing pressures in certain product lines and slightly higher freight expense.

Nine Months Ended Sept. 30

Nine Months Ended Sept. 30

Nine Months Ended Sept. 30

2009

% Change

2009

% Change

For the nine-months ended September 30, 2010, net sales increased $35.9 million or 7% due to gradual improvement in many of the Company’s end markets. Gross profit was 21.9% through the nine months of 2010 compared to 26.0% in the same period of 2009. The decline was primarily the result of significantly higher raw material costs, particularly during the second quarter of 2010. Year to date, raw material costs were up more than 45% on average compared to 2009.

Income from continuing operations for the 2010 nine-month period includes special pre-tax expenses of approximately $2.2 million, primarily related to restructuring activities. For the same period in 2009, income from continuing operations includes special pre-tax expenses of approximately $19.3 million, primarily related to restructuring expenses and $4.0 million of asset impairment. A reconciliation of GAAP to Non-GAAP financial measures is included at the end of this release.

While we are optimistic for improvements across many of our end markets, we remain cautious and anticipate gradual recovery given the visibility of economic conditions at this time. In this environment, we have taken steps to improve margins and further offset exposure to volatile upturns in raw material costs, particularly in the Lawn and Garden Segment.

The Company does not have a third quarter conference call scheduled. The Company’s next regular call will be in February 2011 to review fourth quarter and full-year performance.

Selling, General and Administrative Expenses

Income (Loss) from Continuing Operations Before Income Taxes

Income (Loss) from Continuing Operations

Income (Loss) from Discontinued Operations, Net of Tax

Income (Loss) Per Basic & Diluted Common Share

Weighted Average Common Shares Outstanding