PITTSBURGH Appliance Recycling Centers of America Inc.s (Arcas) third-quarter earnings received a boost from improved margins and a reduction in operating expenses.
The Minneapolis-based company posted net income of more than $1.13 million for the three months ended Sept. 28 in contrast to a net loss of $1.08 million in the same period last year on revenue that increased 16.7 percent to nearly $33.54 million. It was the third consecutive profitable quarter for the recycler.
"Were pleased with our third-quarter results, especially considering the significant operational and financial challenges we faced the past year," president and chief executive officer Edward R. Cameron said.
The ability to purchase obsolete appliances at favorable prices increased the recycling segments operating earnings, executives said during the companys third-quarter conference call.
Arcas recycling segment recorded revenue of $11.82 million in the quarter, up 68.3 percent from $7.03 million a year earlier, with the increase in recycling volumes helping to offset a 16-percent reduction in scrap metal prices.
Revenue from the companys by-products segment totaled $4.7 million in the third quarter, up 6.4 percent from $4.42 million a year ago.