Insurance Auto Auctions’ Expansion Raises Profits

Insurance Auto Auctions Inc., a North Hollywood auto salvager, said its earnings in the fourth quarter that ended Dec. 31 were $2.87 million, up 70% from $1.69 million in the same period a year earlier. Sales in the fourth quarter were $50.75 million, up 81% from $27.9 million in the fourth quarter last year.

For the year, profits were up 66% to $10.99 million from $6.62 million in the previous year. Revenues for the year were up 65% to $172 million from $104 million.

The company attributed the results to expansion. Insurance Auto Auctions acquired five companies in 1994, including one acquired in the fourth quarter. The company also opened three new salvage sites and signed a new national supply agreement with Allstate Corp. during 1994.