Auto Recycling eNewsletter

For immediate release - April 2006

Written and published by Mike Gibson and Ron Sturgeon, autosalvageconsultant.com, email to email Mike Gibson

To register for future free issues, visit http://www.autosalvageconsultant.com. Don’t forget to watch for our management articles monthly in Recyclers Power Source Magazine, or posted at our web site.

This Month’s News

LKQ Corporation Announces 2005 Fourth Quarter Net Income Results Up 64%, With Record Revenue, CHICAGO, March 2 /PRNewswire-FirstCall/

LKQ Corporation today announced results for its fourth quarter and year ended December 31, 2005, with revenue of $143.9 million for the quarter and $547.4 million for the year. Net income was $8.3 million for the quarter and $30.9 million for the year, representing growth over 2004 of approximately 64% and 50%, respectively.

LKQ Shares Drop on Downgrade, MSN Money, NEW YORK (AP), March 3

Shares of LKQ Corp., a recycler of damaged cars, fell Friday after an analyst downgraded the company, saying that the stock has nearly reached his target price. In afternoon trading, LKQ shares were down $2.44, or 11 percent, to $20.06 on the Nasdaq. On Thursday, the company reported that its fourth-quarter income rose 64 percent on a 27 percent jump in revenue, beating Wall Street estimates. Sam Darkatsh of Raymond James & Associates reduced the company's rating to "Market Perform" from "Outperform." He said the close proximity of Thursday's share price to his firm's target price of $22.75 combined with lighter-than-expected first-quarter 2006 guidance lead him to believe that the shares are currently fairly valued. However, Anthony F. Cristello of BB&T Capital Markets maintained his "Buy" rating on the company's stock along with a $25 price target, saying recent acquisitions will boost LKQ's earnings per share for the 2007 fiscal year.

Schnitzer Names New Director, dBusiness News, Portland, March 15

PORTLAND -- Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today announced that its Board of Directors elected William D. Larsson as a director of the Company. Larsson, Senior Vice President and Chief Financial Officer of Precision Castparts Corp. (NYSE:PCP), becomes the Company's eleventh director and sixth independent director under NASDAQ rules. This action fulfills the Company's stated intention to have its board composed of a majority of independent directors. At the Company's 2006 annual meeting of shareholders held in January, two other independent directors were elected: Judith A. Johansen, Chief Executive Officer of PacifiCorp, and Mark L. Palmquist, Executive Vice President and Chief Operating Officer, Grains and Foods, of CHS, Inc. The new directors join incumbent independent directors Robert Ball, William Furman and Ralph Shaw. Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metals products in the United States with 35 operating facilities located in 11 states throughout the country and six export facilities located on both the East and West Coasts and in Hawaii. SSI's vertically integrated operating platform also includes its auto parts and steel manufacturing businesses. SSI's auto parts business sells used auto parts through its 31 Pick-n-Pull self service facilities and 19 Greenleaf full service facilities located in 14 states and western Canada. With an annual production capacity of 700,000 tons, SSI's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. SSI commenced its 100th year of operations in 2006.

Schnitzer rise on bullish analyst report , The Associated Press/Portland, Ore., March 15

In afternoon trading, shares rose $2.26, or 7.4 percent, to close at $32.64 on the Nasdaq. Over the past year, the stock has traded from $21 to $38.84 per share. Wayne Atwell of Morgan Stanley rated the company "Overweight" and set a $53 price target, saying its shares appear undervalued. "We believe Chinese economic growth will drive structural increases in scrap steel prices and per-ton margins over the next 10 to 20 years," Atwell wrote in a note to investors. In addition, Atwell projected that the company's cash will grow to $12 per share over the next two and a half years, providing the funds needed for share repurchases or acquisitions.

“ I learned that we can do anything, but we can’t do everything.. at least not at the same time. So think of your priorities not in terms of what activities you do, but when you do them. Timing is everything.”

Dan Millman

AutoSalvageconsultant.com was formed in 2001 to help recyclers improve their businesses. With over 50 years of experience in 3 staff members, the group is THE definitive source for recyclers’ management and training needs. Mike Gibson and Tammy Sturgeon joined the team in 2003, and bring a wealth of experience to the team, plus more resources, as there have been more requests for help than Ron could meet. The founder, Ron Sturgeon is past owner of AAA Small Car World. In 1999, he sold his six Texas locations, with 140 employees, to Greenleaf. In 2001, he founded North Texas Insurance Auction, which he sold to Copart in 2002. In 2002, his book “Salvaging Millions” was published to help small business owners achieve significant success, and was recently reprinted and published in Chinese. In June 2003, he joined the new ownership and management team of GreenLeaf. He also manages his real estate holdings and investments. You can learn more about how to help your business at www.autosalvageconsultant.com. Mike can be reached at 1409 Carson, Haltom City, TX 76117, (preferably) email Mike Gibson, or 817-925-8430.