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Auto Recycling ENewsletter
For immediate release - November 2003
Written and published by Ron Sturgeon, RDS Investments, email to email Ron Sturgeon
To register for future free issues, visit http://www.autosalvageconsultant.com
LKQ Corporation (NASDAQ:LKQX) reported results for its third quarter ended September 30, 2003, with revenue of $83.5 million and net income of $3.5 million, representing growth over the third quarter of 2002 of 16.2% and 49.1%, respectively. "We reported another quarter of year over year double digit revenue and earnings growth," said Joe Holsten, President and Chief Executive Officer. For the nine months ended September 30, 2003, net income increased by $52.8 million to $11.6 million compared with a $41.2 million net loss for the same period in 2002. We expect full year 2003 revenue to be within a range of $323 million to $326 million, net income to be within a range between $14.2 million and $14.6 million and diluted earnings per share to be between $0.78 and $0.80.
LKQ’s stock has generally done well, up about 20% since opening about a month ago (currently at $17.20).
Mitchell Releases
Salvage Management 2.0
Mitchell International announced the commercial release of Salvage Management 2.0, a web-based software tool that enables insurers to manage salvage disposal information - from transmitting assignments and updates to salvage vendors to tracking critical salvage events, including towing, title transfers, and sale information.
Mitchell says the new Salvage Management is integrated with Mitchell's claims solutions and is a key component of the organization's building-block approach to claims workflow management for the Auto Physical Damage Industry.
Parts Grading Standard
Proposed by ARA Differs from the one Currently in use
The Electronic Commerce Committee, along with various advisors, has worked over the past twelve months to prepare a new format for e-commerce recycling terms. The committee is eager to begin using these definitions, but is providing a 90-day period for ARA members to review and comment on the draft information.
ARA’s committee has proposed to utilize a different system than that currently utilized by URG’s. URG’s committee of recyclers designed their system approximately 5 years ago. As one of the founders of URG, I created the credit card size measuring system, and URG went on to utilize that standard in their grading system. If ARA’s definition as proposed is issued, it will create 2 different systems of measurement, which will surely cause confusion and dilute the value of recycler’s data. Utilizing URG's grading system as is creates harmony, and seamless utilization of parts data, making the data MORE valuable.
Ed Lacy, URG manager and a committee member said, “I think this is a potential mistake. Not being able to delineate a complete and undamaged part from a part with damage sized as large as a credit card puts us all at a disadvantage. This will put parts under the “A” grade that a repair facility will want to use along with parts they may take if forced to. The whole purpose of grading parts is to describe them more accurately, not less – as this change would surely do”. For further information on ARA’s proposed policy, visit http://www.autorecyc.org/docs/bookstore/ARA_Parts_Guideline-DRAFT.pdf. Please provide ARA with your written comments to the attention of ARA Electronic Commerce Committee at fax number: (703) 385-1494 or c/o Mimi Sullivan at Sullivan@autorecyc.org."
AUTOSALVAGECONSULTANT.COM Adds Two Experienced
Consultants
Visit www.autosalvageconsultant.com for more information to help you with your business. Two consultants have been added to the staff, to accommodate the growing needs of recyclers wanting help improving their businesses. We now have over 50 years of experience, ready to help you!
How’s Business?
“Plan your work…Then work your plan”
Norman Vincent Peale (1898-1993)
I am still hearing
about people that aren’t doing well. Most are content to just complain, but
believe me; things aren’t going to do better until you make a plan to make it
happen. Remember, if you keep doing what you’ve been doing, you will keep
getting what you’ve been getting. MAKE A PLAN TODAY. If you need help, contact
one of us at www.autosalvageconsultant.com,
we can get you there and quickly. Most of the time our clients get our cost
back within just a few days of a visit, on recommended changes, and go on to
increase profits.
AutoSalvageconsultant.com was formed in 2001 to help recyclers improve their businesses. With over fifty years of experience in three staff members, the group is THE definitive source for recyclers’ management and training needs. 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 You can reach us at 5940 Eden, Haltom City, TX 76117, (preferably) email Ron Sturgeon or 817-834-3625 ext 6#.