See notes to unaudited condensed consolidated financial statements.

     Statement of Accounting Policy

         The accompanying financial statements include the accounts of Myers Industries, Inc. and subsidiaries (Company), and have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's latest annual report on Form 10-K.

        In the opinion of the Company, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of
March 31, 2006, and the results of operations and cash flows for the three months ended March 31, 2006 and 2005.

        Certain items previously reported in specific financial statement captions have been reclassified to conform with the 2006 presentation.

     Goodwill

          The change in goodwill for the quarter ended March 31, 2006 is as follows:

     Stock Compensation

        In 1999, the Company and its shareholders adopted the 1999 Stock Plan allowing the Board of Directors to grant key employees and Directors the right to purchase Common Stock of the Company at the market price on the date of grant. In general, options granted and outstanding permit 20 percent of the shares granted to be exercised after six months, with additional vesting of 20 percent exercisable each year thereafter, with the options expiring ten years from the date of grant. At March 31, 2006, there were 1,602,448 stock option shares available for future grant.

        On January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123 (Revised 2004), ("SFAS 123R"), Share-Based Payment, which requires the Company to measure all employee stock-based compensation awards using a fair value method and record the related expense in the financial statements. The Company elected to use the modified prospective transition method. The modified prospective transition method requires that compensation cost be recognized in the financial statements for all awards granted after the date of adoption as well as for existing awards for which the requisite service has not been rendered as of the date of adoption and requires that prior periods not be restated. All periods presented prior to January 1, 2006 were accounted for in accordance with Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees".

        In November 2005, the FASB issued FSP No. 123R-3 ("FSP 123R-3"), Transition Election Related to Accounting for the Tax Effects of Share-Based Payment Awards to provide an alternative transition election related to accounting for the tax effects of share-based payment awards to employees to the guidance provided in Paragraph 81 of SFAS 123R. An entity may take up to one year from the initial adoption of SFAS 123R to evaluate its available transition alternatives and make its one-time election. Until and unless an entity elects the transition method described in FSP 123R-3, the entity should follow the transition method described in Paragraph 81 of SFAS 123R. SFAS 123R requires an entity to calculate the pool of excess tax benefits available to absorb tax deficiencies recognized subsequent to adoption Statement 123R (termed the "APIC Pool"). The Company is currently evaluating which transition method it will use for calculating its APIC Pool.

      The adoption of SFAS 123R reduced income before taxes for the three months ended March 31, 2006 by approximately $108,000. These expenses are included in selling and administrative expenses in the accompanying Condensed Statement of Consolidated Income. Total unrecognized compensation cost related to nonvested share based compensation arrangements at March 31, 2006 was approximately $860,000, which will be recognized over the next four years.

        The following table illustrates the effect on net income and net income per share as if we had applied the fair value recognition provisions of SFAS No. 123R to stock-based employee compensation in prior periods presented.

        During 2005, the Company granted 326,810 options with an exercise price which was the same as the closing price of the Company's stock on the date of the grant. The options permit 20 percent of the shares granted to be exercised after six months, with additional vesting of 20 percent exercisable each year thereafter, with the option expiring ten years from the date of grant. The average fair value of the options granted was $2.94. This value was estimated at the date of grant using a trinomial lattice option pricing model with the following weighted average assumptions:

        The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The total intrinsic value of the options exercised during the three months ended March 31, 2006 and 2005 was approximately $1.2 million and $162,000, respectively.

     Inventory

        In November 2004, the FASB issued SFAS No. 151 ("SFAS 151"), Inventory Costs - an amendment of ARB No. 43, Chapter 4. SFAS 151 requires abnormal amounts of idle facility expense, freight, handling costs, spoilage to be recognized as current period charges. SFAS 151 also requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities.

The adoption of SFAS 151 by the Company as of January 1, 2006 did not have a material effect on the Company's financial condition, results of operations or cash flows.

     Supplemental Disclosure of Cash Flow Information

        The Company made cash payments for interest expense of $2,414,000 and $2,216,000 for the three months ended March 31, 2006 and 2005, respectively. Cash payments for income taxes totaled $2,057,000 and $818,000 for the three months ended March 31, 2006 and 2005.

     Comprehensive Income

        An unaudited summary of comprehensive income for the three months ended March 31, 2006 and 2005 was as follows:

     Retirement Plans

        For the Company's defined benefit pension plans, the net periodic benefit cost for the three months ended March 31, 2006 and 2005 was as follows:

     Contingencies

     In July 2004, the Company reported to four U.S. governmental agencies certain business practices which were believed to be in violation of certain laws. An independent investigation was conducted by out Audit Committee using outside legal counsel and the results of the investigation were provided to the agencies. The U.S. Department of Justice (DOJ) determined not to proceed against the Company or its employees. The Bureau of Industry and Security (BIS) notified the Company it had completed its investigation and decided not to refer the matter for criminal or administrative prosecution and closed the matter by issuing a warning

letter. We are voluntarily working with the SEC and Office of Foreign Asset Control to settle any enforcement issues arising from these matters, however, we cannot reasonably estimate the potential liability and, therefore, we have not recorded any provision for settlement. Management believes that any liability, although possible, will not have a material effect on our consolidated financial position results of operations or cash flows.

     Segment Information

       The Company's business units have separate management teams and offer different products and services. Using the criteria of SFAS No. 131, these business units have been aggregated into five reportable segments. These include four manufacturing segments encompassing a diverse mix of plastic and rubber products: 1) Material Handling - North America, 2) Material Handling - Europe, 3) Automotive and Custom, and 4) Lawn and Garden. The fifth segment is Distribution of tire, wheel, and undervehicle service products. The aggregation of operating segments is based on management by the chief operating decision maker for the segment as well as similarities of products, production processes, distribution methods and economic characteristics.

        Operating income for each segment is based on net sales less cost of products sold, and the related selling, administrative and general expenses. In computing segment operating income, general corporate overhead expenses and interest expenses are not included.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

     Results of Operations

        For the quarter ended March 31, 2006, net sales were a record $244.9 million, an increase of 4 percent from the $236.2 million reported in 2005. Net income for the quarter was also a record at $10.8 million, an increase of 39 percent compared to $7.8 million in 2005. Net income per share for the quarter ended March 31, 2006 was $0.31, an increase of 41 percent compared to the prior year period. Foreign currency translation did not have a significant effect on reported sales or net income for the first quarter of 2006.

higher selling prices in some markets. Income before taxes was $3.8 million, an increase of 46 percent compared to the $2.6 million reported in 2005. The increase in sales volume and higher selling prices helped mitigate the impact of higher raw material costs while ongoing cost control programs resulted in substantial improvements in operating expense leverage.

        In the Lawn and Garden Segment, sales in the quarter ended March 31, 2006 were $51.5 million, an increase of one percent compared to the prior year. Income before taxes in the current quarter was $6.8 million, an increase of one percent compared to the $6.7 million reported in the prior year first quarter.

     Liquidity and Capital Resources

        Cash provided from operating activities was $10.2 million for the quarter ended March 31, 2006 compared with $13.8 million in the prior year. The decrease of $3.6 million in cash provided by operating activities was primarily due to the $9.2 million of cash used for net working capital changes in the current year compared to cash used of $4.6 million in 2005. The increase in cash used for working capital reflects higher accounts receivable balances due to increased sales and other seasonal requirements, particularly related to the Company's Lawn and Garden segment. During the quarter, total debt was reduced by approximately $2.1 million and debt as a percentage of total capitalization at March 31, 2006 was reduced to 42 percent, compared to 43 percent at December 31, 2005. At March 31, 2006, the Company had working capital of $176.6 million and a current ratio of 2.4 which represents a slight improvement compared to the prior yearend.

        Capital expenditures for the quarter ended March 31, 2006 were $4.5 million and are expected to be in the range of $25 to $30 million for the year. Cash flows from operations and funds available under the Credit Agreement will provide the Company's primary source of financing. At March 31, 2006, the Company had approximately $83 million available under the Credit Agreement. Management believes that cash flows from operations and available credit facilities will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital and debt service.

Item 3.  Quantitative and Qualitative Disclosure About Market Risk

        The Company has financing arrangements that require interest payments based on floating interest rates. As such, the Company's financial results are subject to changes in the market rate of interest. Our objective in managing the exposure to interest rate changes is to limit the volatility and impact of rate changes on earnings while maintaining the lowest overall borrowing cost. At present, the Company has not entered into any interest rate swaps or other derivative instruments to fix the interest rate on any portion of its financing arrangements with floating rates. Accordingly, based on variable interest debt levels at March 31, 2006, if market interest rates increase one percent, the Company's interest expense would increase approximately $1.4 million annually.

        Some of the Company's subsidiaries operate in foreign countries and, as such, their financial results are subject to the variability that arises from exchange rate movements. The Company believes that foreign currency exchange rate fluctuations do not represent a significant market risk due to the nature of the foreign countries in which we operate, primarily Canada and Western Europe, as well as the size of those operations relative to the total Company.

        The Company uses certain commodities, primarily plastic resins, in its manufacturing processes. As such, the cost of operations is subject to fluctuation as the market for these commodities changes. The Company monitors this risk but currently has no derivative contracts to hedge this risk, however, the Company also has no significant purchase obligations to purchase fixed quantities of such commodities in future periods.

Item 4.     Controls and Procedures

        The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluation the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

        The Company carries out a variety of on-going procedures, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, to evaluate the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on the foregoing, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period covered by this report.

        There has been no change in the Company's internal controls over financial reporting during the Company's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal controls over financial reporting.

Exhibit Index