PITTSBURGH Appliance Recycling Centers of America Inc. (Arca) returned to profitability in the first quarter, citing the replacement of white goods by consumers as a driving force.
The Minneapolis-based recycler posted net income of $184,000 in contrast to a $66,000 net loss in the first three months of last year despite an 8.6-percent decline in revenue to $18.1 million.
"These resultsincluding our return to profitabilitydemonstrate solid progress executing the strategic initiatives we outlined earlier this year," president and chief executive officer Edward R. Cameron said.
Cameron noted that a strong appliance replacement program boosted its first-quarter recycling revenues to $8.3 million, up 57.6 percent from nearly $5.3 million a year earlier, and the company expects the growth path to continue as new energy efficiency requirements take effect in 2014.
The byproducts segment saw its revenues fall 8.6 percent due to a 4-percent reduction in overall recycling volumes and a 14-percent decline in scrap prices compared with the first three months of last year, and the company expects scrap prices to remain volatile for the remainder of this year and into 2014.