Lower vehicle sales erode Copart's 3Q profit

Junk-car auction service Copart Inc. says its profit decreased 9 percent in the fiscal third quarter as the economic slump bit into sales.

Late Wednesday, Copart said its profit fell to $42.1 million, or 50 cents per share, from $46.5 million, or 52 cents per share. Profit from continuing operations was 48 cents per share. Revenue fell 11 percent, to $197.3 million from $221.2 million as vehicle sales dropped 38 percent to $32.3 million from $52.2 million.

Analysts surveyed by Thomson Reuters expected 47 cents per share and $202.1 million in revenue for the quarter ended April 30.

Copart said remarketing fees decreased to $165 million, compared with $169 million a year ago, and less favorable foreign currency exchange rates reduced revenue by $14.1 million.