AKRON, Ohio (AP) -- Myers Industries Inc., a manufacturer of polymer products for industrial, commercial and consumer markets, said Monday that it will take charges of up to $28 million as it cuts costs.
Myers Industries said it will consolidate manufacturing and begin workflow and inventory management programs to drive increased productivity and improved customer service.
The work will be phased in the next 12 months to avoid service disruptions.
The company will reduce overhead and distribution costs and cut capital requirements, said John C. Orr, president and chief executive.
"In doing so, we will be better positioned to serve our customers with the products they need, manufactured at the right location for the customer and delivered when they need them," he said.
Myers Industries anticipates generating annualized pretax savings of about $20 million as the projects are fully implemented. Estimated charges and savings could be revised, the company said.
Myers Industries said it will take charges of between $23 million and $28 million, of which about $14 million to $17 million is expected to be non-cash. The charges will be presented in financial statements over the next several quarters and are primarily related to severance, rationalization, asset write-downs and other items.
Shares of Myers Industries fell 25 cents, or 2 percent, to $12.22 in early afternoon trading.