Myers Industries Reports Strong 2011 Second Quarter Results

Myers Industries, Inc. (NYSE: MYE) today announced results for the second quarter ended June 30, 2011. Net sales for the second quarter were $176.8 million compared to $175.9 million in the second quarter of 2010. Gross profit percentage increased to 24.9% in the second quarter compared to 19.3% in the second quarter of 2010. The continued focus on operations excellence including productivity, product pricing and favorable mix contributed to offset raw material cost increases in the quarter.

Net income, which includes approximately $0.6 million of pre-tax restructuring costs, as detailed on the Reconciliation of Non-GAAP Financial Measures included in this release, was $4.7 million or $0.13 per share for the second quarter of 2011. Net loss in the second quarter of 2010 was ($1.1) million or ($0.03) per share and included $1.6 million of special pre-tax costs also detailed on the Reconciliation of Non-GAAP Financial Measures. Adjusting for special items, earnings per share was $0.14 compared to a breakeven second quarter of 2010.

"Our strong second quarter operating results were driven primarily by gross margin expansion which is a direct reflection of our continuing ability to offset raw material cost increases,” said President and Chief Executive Officer John C. Orr. "This is the fourth consecutive quarter that we have delivered improved operating results, on an adjusted basis. Our improved results over these past four quarters demonstrate the positive operating momentum being created through the successful execution of our performance improvement plans.”

Segment Results
The results below are as adjusted and exclude pre-tax restructuring costs as detailed on the Reconciliation of Non-GAAP Financial Measures included in this release.

The Material Handling Segment’s net sales were $67.0 million compared to $62.7 million in the second quarter of 2010, an increase of 7%. Strong sales across all markets, especially the agricultural, food processing, and automotive markets offset a significant drop in pallet sales in 2011 as compared to 2010. Income before taxes in Material Handling was $8.4 million compared to $4.1 million in the second quarter of 2010. Favorable product mix and productivity improvements resulted in higher gross margins which contributed to the increased operating results. Also contributing were increased volume and higher selling prices which offset higher raw material costs.

The Lawn & Garden Segment’s net sales were $41.4 million compared to $45.2 million in the second quarter of 2010. The decrease of 9% was mostly the result of soft consumer demand due to the weak economy and unfavorable weather conditions. Lawn & Garden’s loss before taxes was $1.6 million compared to a loss of $5.4 million in the second quarter of 2010. Despite the decrease in volume and a significant rise in resin costs, the segment was able to deliver improved operating results through successful execution of an operations turn around plan put into place in the second half of 2010.

The Distribution Segment’s net sales increased 5% to $46.1 million as compared to $44.0 million in the second quarter of 2010. The growth in sales is mostly the result of new products sales and a broader customer base. Distribution’s income before taxes was $4.5 million as compared to $3.9 million in the second quarter of 2010. A favorable product mix of supplies versus equipment, as well as the increase in sales, led to the 15% increase in income.

The Engineered Products Segment’s net sales were $27.9 million compared to $29.7 million in the second quarter of 2010, a decrease of 6% which was primarily due to a temporary interruption in the transplant auto business. Engineered Product’s income before taxes was $2.7 million compared to $3.3 million for the second quarter of 2010. The decrease in income is mainly attributable to the lower sales and a resulting change in product mix.

Cash Flow
Cash flow provided by operations for the six months ended June 30, 2011 was $8.8 million as compared to negative cash flow from operations of $2.6 million in 2010 primarily due to increased earnings.

Capital expenditures were $3.2 million in the second quarter and total $5.8 million for the six months ended June 30, 2011. Full year capital expenditures are estimated to be between $20 million and $25 million.

Other Financial Items
In May of 2011, the Company announced a share repurchase plan that allows the Company to purchase up to five million shares of its common stock in the open market. As of June 30, 2011, the Company had purchased 371,779 shares of stock under a 10b5-1 plan at an average price of $10.01 resulting in a cash outflow of $3.7 million. At the end of the quarter debt, net of cash, was $83.8 million.

Outlook for the Second Half of 2011
The Company believes that its improved operating momentum over the last four quarters demonstrates its ability to execute the performance improvement plans initiated in the second half of 2010 as well as its longer-term strategic initiatives.

Conference Call Details
The Company will host an earnings conference call and webcast for investors and analysts on Thursday, July 21, 2011 at 10:00 a.m. ET. The call is anticipated to last approximately one hour and may be accessed at (877) 407-8033. Callers are asked to sign on at least five minutes in advance. The call will be available as a webcast through the Company's web site, www.myersind.com. Click on the Investor Relations tab to access the webcast. Webcast attendees will be in a listen-only mode. An archived replay of the call will also be available on the site shortly after the event. To listen to a telephone replay, callers should dial: (US) 877-660-6853 or (Int’l) 201-612-7415. The replay passcodes are: Account # 286; Conference ID # 375553.

About Myers Industries
Myers Industries, Inc. is an international manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets. The Company is also the largest wholesale distributor of tools, equipment and supplies for the tire, wheel and undervehicle service industry in the U.S. The Company reported net sales from continuing operations of $737.6 million in 2010. Visit www.myersind.com to learn more.

Caution on Forward-Looking Statements
Statements in this release may include "forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that is not of historical fact may be deemed "forward-looking”. Words such as "expect”, "believe”, "project”, "plan”, "anticipate”, "intend”, "objective”, "goal”, "view”, and similar expressions identify forward-looking statements. These statements are based on management’s current views and assumptions of future events and financial performance and involve a number of risks and uncertainties, many outside of the Company’s control that could cause actual results to materially differ from those expressed or implied. Risks and uncertainties include: changes in the markets for the Company’s business segments; changes in trends and demands in the

markets in which the Company competes; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; raw material availability, increases in raw material costs, or other production costs; future economic and financial conditions in the United States and around the world; ability to weather the current economic downturn; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; the Company’s ability to execute the components of its Strategic Business Evolution process; and other risks as detailed in the Company’s 10-K and other reports filed with the Securities and Exchange Commission. Such reports are available on the Securities and Exchange Commission’s public reference facilities and its web site at http://www.sec.gov, and on the Company’s Investor Relations section of its web site at http://www.myersind.com. Myers Industries undertakes no obligation to publicly update or revise any forward-looking statements contained herein. These statements speak only as of the date made.

Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items mentioned above in the text of this release and in this reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above, using GAAP amounts from the Consolidated Financial Statements. The Company believes that the excluded items are not primarily related to core operational activities. The Company believes that income (loss) excluding items that are not primarily related to core operational activities is generally viewed as providing useful information regarding a company’s operating profitability. Management uses income (loss) excluding these items as well as other financial measures in connection with its decision-making activities. Income (loss) excluding these items should not be considered in isolation or as a substitute for net income (loss), income (loss) from continuing operations or other consolidated income data prepared in accordance with GAAP. The Company's method for calculating income (loss) excluding these items may not be comparable to methods used by other companies.