Turners Auctions loses contract to sell wrecks for IAG, denting profit
Turners Auctions has lost the contract to sell damaged vehicles for Insurance Australian Group, New Zealand's largest general insurer, eliminating a revenue line that generates more than 15 percent of profit.
Auckland-based Turners currently has 555 damaged vehicles listed on its website and 1000 that are undamaged.
The contract with IAG ends in the next few months and the loss "will have a negative impact on the company's earnings for the second half of the December 2013 year and beyond," the company says in a statement.
It plans to give a detailed assessment of the impact at its annual meeting on April 24. Profit in the first two months of calendar is 11 percent ahead of the same period last year, it says.
It had been forecasting damaged vehicle sale to be about the same as last year.
Shares of Turners last traded at $2.10 and have gained about 14 percent this year.