New Law, Price Rise Hurt Insurance Auto Inc. Profit
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Insurance Auto Auctions Inc., a North Hollywood seller of automotive salvage, reported that its fourth-quarter profit plunged 72%, to $790,000.
In the December quarter a year earlier, the company earned $2.87 million. Its fourth-quarter revenue, however, rose 33%, to $67.6 million from $50.8 million.
For all of 1995, Insurance Auto reported a profit of $3.14 million, down 71% from net income of $11 million in 1994. Its annual revenue increased 50%, to $258 million from $172.1 million.
The company suffered in 1995 in part because of a steep rise in used car prices. It was also hurt by a new state law requiring inspections of rebuilt vehicles before they are auctioned.
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