Fewer sales of dinged and dented appliances and less revenue from its recycling operations dropped Appliance Recycling Centers of America Inc.'s (Arca's) third-quarter net income almost two-thirds below the total posted for the year-earlier period.

Net income for the Minneapolis-based appliance recycler and retailer sank 63.5 percent to $416,000 for the three months ended Oct. 3 from $1.1 million in the year-earlier period on revenue that fell 11.6 percent to $26 million from $29.4 million.

Third-quarter revenue from its ApplianceSmart Factory Outlets...