AKRON, Ohio - Myers Industries Inc . (NYSE: NYSE:MYE), a diversified manufacturing and distribution company, announced today that Dave Basque has been appointed as Interim President and CEO, effective immediately. The decision follows the departure of former CEO Mike McGaugh. Basque, who has been with Myers Industries since 2020, will hold the position until a permanent replacement is found, with the search being conducted by a nationally recognized executive search firm.
Dave Basque brings over 35 years of industry experience to his new role, having previously held senior operational and acquisition integration roles at The Dow Chemical Company (NYSE:DOW). At Myers, he has been responsible for overseeing the injection molding operations within the Material Handling Segment and managing the company's acquisition integrations.
F. Jack Liebau Jr., Chairman of the Myers Industries Board, expressed gratitude to Mike McGaugh for his leadership and contribution to the company's transformation over the past four and a half years. Liebau Jr. also expressed confidence in Basque's ability to continue driving the company's strategy focused on operational excellence and profitability.
Basque's appointment is part of a leadership transition aimed at supporting the ongoing transformation of Myers Industries, which serves a variety of markets including industrial, agricultural, automotive, commercial, and consumer sectors. The company is also a significant distributor for the tire, wheel, and under-vehicle service industry in the United States.
The company's press release included forward-looking statements, cautioning that actual results could differ materially from those expressed due to various risks and uncertainties. These statements are not guarantees of future performance and are subject to change.
This leadership change is based on a press release statement issued by Myers Industries, and it remains to be seen how this transition will influence the company's future endeavors and market position.
In other recent news, Myers Industries has seen significant developments. A key change in leadership has been announced, with Jeff Baker taking over as President of the Distribution Segment from October 1, 2024, as Jim Gurnee steps down. This transition is part of a planned succession to ensure smooth leadership continuity in the Distribution Segment.
Myers Industries reported strong financial performance for Q2, despite a decrease in organic sales. This was largely attributed to the integration of Signature Systems, which led to growth in key financial margins. The company is implementing cost-saving initiatives, expecting to realize between $7-9 million in annual savings and $8 million in cost synergies by 2025.
However, due to softer demand and macroeconomic challenges, Myers has revised its full-year guidance, now forecasting net sales growth of 5% to 10%, and adjusted earnings per diluted share of $1.05 to $1.20. Despite a 6.3% drop in organic sales, the Material Handling segment saw a 39% increase in adjusted EBITDA due to the Signature acquisition.
The company is also planning to close three distribution centers and consolidate its Iowa facility, targeting $5 million in annualized cost savings. Myers is focusing on long-term growth, identifying potential opportunities in the infrastructure and military sectors. The company expects the Scepter military business to grow to approximately $40 million by 2025.
InvestingPro Insights
Amidst the leadership transition at Myers Industries Inc. (NYSE: MYE), investors and stakeholders are closely monitoring the company's performance metrics and market position. According to the latest data from InvestingPro, Myers Industries boasts a market capitalization of approximately $521.86 million, reflecting the company's standing in the industry.
The company's commitment to shareholder returns is evidenced by its impressive track record of maintaining dividend payments for 53 consecutive years, which is a testament to its financial stability and dedication to its investors. This consistency aligns with the company's strategy of operational excellence and profitability, as emphasized by the new Interim President and CEO, Dave Basque.
Analyzing the financials, Myers Industries has a Price/Earnings (P/E) ratio of 13.35, which suggests that the stock is reasonably valued compared to earnings. This is further supported by the InvestingPro Tip that the valuation implies a strong free cash flow yield, indicating the company's ability to generate cash and potentially reinvest in the business or return value to shareholders.
Despite recent market volatility, as reflected in the one-week price total return of -8.31%, analysts remain optimistic about the company's prospects. This optimism is bolstered by another InvestingPro Tip highlighting that analysts predict Myers Industries will be profitable this year, which is consistent with the company being profitable over the last twelve months.
For investors seeking more detailed analysis and additional InvestingPro Tips on Myers Industries, there are numerous tips available, offering deeper insights into the company's financial health and future outlook. Visit https://www.investing.com/pro/MYE for a comprehensive set of tips and data to inform your investment decisions.
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