Auto Auctions Reports Sharp Drop in Earnings

Insurance Auto Auctions Inc., a North Hollywood-based company that sells automotive salvage, reported a sharp decline in earnings despite increased revenues during the second quarter that ended June 30.

The company reported a profit of $1.92 million in the second quarter, down 37% from $3.05 million in the corresponding period a year earlier. Revenues, however, rose to $65.2 million, up 54% from $42.4 million a year earlier.

For the first six months of the year, the company posted earnings of $4.59 million on sales of $125 million, compared to year-earlier net income of $5.07 million on sales of $80 million.

Insurance Auto Auctions sells damaged vehicles, or those that have been recovered after being reported stolen, for insurance companies. The company said unusually mild weather in the Midwest and Northeast during the first six months of the year led to fewer car crashes and reduced volumes of incoming vehicles.