Auto Recycling E Newsletter

Auto Recycling eNewsletter

For immediate release – June 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

Schnitzer Steel Industries qtrly profit falls

Metals recycler Schnitzer Steel Industries Inc. said on Monday that its quarterly profit fell as a result of higher raw materials acquisition costs in some regions and seasonal Weakness in the auto parts unit. Earnings for the second fiscal quarter were $21.1 million or 68 cents per share, compared with $36 million or $1.15 per share in the same quarter last year, the Portland, Oregon-based company said. Analysts, on average, had expected earnings of 72 cents a share, according to Reuters Estimates. Revenue in the quarter rose sharply to $403 million from $216 million, but the company's profits were hurt by the high price to buy scrap steel. Schnitzer shares fell $1.63, or 3.9 percent, to $40.55 in early trading on the Nasdaq stock market.

Counterfeit Cashier's Checks

Bill Kaufmann has owned ABLE Auto Salvage for the past two years. They deal only in Ford motor parts and business has been good. In addition to walk-in business, they sell engines on-line. He has a cashier check that followed the first order for five engines. The person wrote it for $2,500 more than the asking price, saying it would cover freight and shipping and asked Bill to just send the overage back to the buyer. "We deposited the cashiers check in order to secure the funds before we sent him our money, then we found out it was a counterfeit." Bill wasn't out any money, but the bank shut down his accounts, which messed up his credit and took time to fix. Since then, more online orders, followed by more checks and money orders, all fakes. "We got them from Nigeria, Africa, Russia and China. All of these are drawn on American banks, but the purchasers are out of state, out of the country." The thieves likely buy a $20 money order or cashiers check, then wash off that ink and type in a new amount. They don't just send the checks, they also call. One person called ABLE Auto Salvage four times and when they refused to send the money, he threatened to bring down the FBI and sheriff's office on them. That didn't scare these guys, but they realize it might scare somebody and they don't want to see anyone fall for this scam. “The Internet crooks are getting better and better. They don't always use a gun and a mask anymore." The old saying, buyer beware, is no longer enough, now, it's also, seller beware. A key tip-off that you're dealing with a scammer is when the check is for more than the asking price. If you're selling online, get the cash in hand, before you send the merchandise.

Web sales a valuable source of income for auto junkers, (Spokesman-Review, The (Spokane, WA) (KRT) Via Thomson Dialog NewsEdge)

Twenty years ago, when Keith Raschko started pulling parts from busted motorcycles junked at Independent Cycle, some of those widgets were only worth their weight in carbon. But time and the Internet have turned those parts into diamonds, and Raschko now has a brisk eBay business where he has sold almost 12,000 items in the past five years. And he's not alone. "It's taken over. It's true," Raschko said of his eBay sales. "It's equivalent to what we used to do over the phone." The information superhighway is doing for local auto junkers what Interstate 90 has for decades done for Spalding Auto Parts, which became iconic from the half mile of I-90 guardrail that the salvage company occupies in Spokane Valley. A ZIP code search of eBay auto parts auctions originating from the greater Spokane area reveals roughly a thousand occurring daily. There are cyber-sellers like Raschko, who has a couple hundred auctions occurring weekly, but also a smattering of small-timers selling junk pulled from backyard wrecks or Spalding's itself. Some say even a thousand sales tracked down through a search by ZIP code and simple terminology like "auto parts" don't tell the whole story. "You could add another thousand or two to that number," said Matt McCullough, who a couple of years ago traded a well-paying government job for one selling used auto parts on eBay. The cyber-seller said he can pull in $1,000 to $2,000 a week by conducting 100 or more auctions at a time. He pulls most of what he sells from different Northwest junkyards, but mostly Spalding's, which he visits daily, ratchet in hand.

Man arraigned in fatal car crash

A 46-year-old Worcester man was released on his recognizance after his arraignment today in Palmer District Court in connection with a December crash on Boston Road in Wilbraham that killed an elderly West Springfield couple. While $5,000 bail was requested, Judge Patricia T. Poehler released Rodney E. Mickunas, of 25 Healey Road, on his own recognizance, said Wilbraham Officer John P. Siniscalchi. Mickunas, who pleaded innocent, is due back in court on April 26 for a pretrial conference, he said. Mickunas is being charged with two counts of vehicular homicide, operating to endanger, negligent operation, marked lanes violation and operating without a license. Mickunas was heading west in a 2003 commercial vehicle on Dec. 13, when police said he crossed the center line into the eastbound lane, sideswiped a pickup truck, then crashed head on into a 1999 Jeep Cherokee operated by Marilyn Dumais, 74. Police said Dumais died at the scene, and her passenger, husband Joseph Dumais, 76, died later. Both were wearing seat belts, police said. Two people in the pick-up truck were treated for minor injuries, police said. Police said Mickunas was delivering auto parts to Springfield for a Webster company called LKQ when the collision occurred. Siniscalchi said Mickunas had a clean driving record. "We believe there was a problem with the steering at the time of the accident," Mickunas' lawyer Kevin C. Larson said in a phone interview. "...We believe the accident was caused by vehicle failure and not operator negligence." Larson said the accident was "a traumatic experience" for his client. He said Mickunas' "heart goes out to the victims of the crash." If convicted, Mickunas could lose his driver's license for 15 years, serve up to 2½ years in jail, and/or pay a $3,000 fine, police said.

Internet Spawns a Demolition Derby With a Wrinkle

Think the Internet has changed your life? Try spending a day dealing with junked cars. On a recent Tuesday afternoon, Roger W. Moore is shopping for wrecks. They've crashed on the region's roads and been towed to a sprawling auction lot in Waldorf, almost 30 miles south of downtown Washington. Roger Moore, a third-generation salvage man, buys wrecks online, has them towed to his family-owned lots -- in King George, Va., and resells parts. Roger W. Moore, who runs a car-dismantling operation in Waldorf, discusses the way the internet has changed the auto salvage business. Moore isn't actually at the auction lot. No reason to be. He is down the road, inside his office, placing bids online. To view the entire article, go to http://www.washingtonpost.com/wp-dyn/content/article/2006/04/21/AR2006042101721.html?referrer=emailarticle

How’s Business?

35% of America's largest businesses outsource their bookkeeping. Because of new technology advances you now have the same alternative as Fortune 500 firms, no matter how small or large you are. As a business owner or manager your time is best spent doing what you do best – Selling Parts. Time spent on bookkeeping adds little or no value to your customer relationship. The most successful businesses of today have gone to outsourcing and now have time and money to spend on differentiating themselves in the marketplace. If you are looking for ways to reduce overhead and focus on your core business, now is the perfect time to make the switch to outsourced accounting. For more information, go to http://www.autosalvagebookkeeping.com or Contact Mike Gibson at 817-925-8430.

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 628 SW Rand Drive, Burleson, TX 76028, (preferably) email Mike Gibson, or 817-925-8430.