Auto Recycling eNewsletter

For immediate release -May 2004

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

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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 Stock & Quarterly Report

Analysts at Robert W Baird maintain their "neutral" rating on LKQ Corporation (LKQX.NAS), while raising their estimates for the company. The target price has been raised from $20 to $24. According to Robert W Baird’s research note published this morning, LKQ reported its 4Q03 results in-line with expectations. The analysts mention that the company benefited considerably from its improved sales-force productivity during the quarter. LKQ has raised its revenue and earnings growth guidance for 2004, while accounting for its recent acquisitions, say the analysts.

URG and IT Host Successful Conventions

Sharon Kellum reports that URG attendance was up 20% over last year’s convention. I was the keynote speaker, and it was good to see all my friends there. The convention was for URG partners, as well as non-partners, and has a heavy emphasis on training, with solid seminars over a 2-day period. Thanks to URG for hosting me.

“IT” also enjoyed a very successful convention. There were 87 vendors and 1295 people registered at last count, and everyone seemed to have a good time. The vendors were very satisfied. George Eliades reported that it was a great show and Bill Weaver was ecstatic with the results.

ARA Executive Director on the Road – Promises Change

George Eliades, the new Executive V.P. of the Automotive Recyclers Association (ARA) spoke at both conventions. I believe he is sincerely interested in revitalizing ARA, and making sure ARA is serving its members. If you aren’t currently a member of ARA, you should consider joining, the industry needs ARA. Call 703-385-1001 and ask for a membership kit. Give George a call also, he is anxious to talk to any recycler.

Mitchell Reports Aftermarket Parts Usage Continues to Increase

According to Mitchell’s winter 2004 Industry Trends Newsletter, aftermarket part usage is increasing. Keystone Industry, a leading supplier of aftermarket body parts, reported record sales in its 2^nd fiscal quarter, with a 100% increase in same store sales. LKQ parts usage is steady, OEM is declining somewhat.

How’s Business?

"Don’t bother just to be better than your contemporaries or predecessors.

Try to be better than yourself."

William Faulkner

Focus on Success, Not Obstacles

Carson Conant, the editor of AdvantEdge magazine, was having a hard time getting the hang of mountain biking. After a number of bad spills, an experienced rider approached him. "When you're riding down a hill like this, what are you looking at?" the expert asked.

Carson said, "I'm trying not to hit a big rock or those trees!"

That's your problem," he replied. "Don't look at the rocks you're trying to avoid. Look at the space between the rocks . . . where you want to go. The bike will follow what you're focusing on."

I've found that this story represents the situation for many people. They see a large obstruction and, out of fear, are derailed. The message: Focus on the clear path ahead -- not the obstacles that you're sure to encounter along the way.

As recyclers, we spend a lot of time worrying about the obstacles, even though we can’t change them. But we spend almost no time thinking about long term goals, the path ahead. Spend some time over the coming month, thinking about what you would like to change in your business, what the goal should be for say, 6 months down the road. Now focus on the tools, steps, and milestones along the way. Think last about the obstacles.

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. 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. He can be reached at 5940 Eden, Haltom City, TX 76117, (preferably) email Ron Sturgeon or 817-834-3625 ext 6#.