Weak car market drives profits down at Turners Auctions

Turners Auctions said a 7.5% fall in annual profit reflected a deteriorating car market in the second half of the year that in turn suggested a weak economy.

The company reported net profit after tax of $3.027 million in the 12 months to December 31, down from $3.273 million in the same period last year. It was achieved on revenue of $70.5 million, which was little changed from $70.35 million last year.

The company is paying a six cent a share final dividend and a six-cent special dividend, taking total dividends for the year to 17 cents a share.

Turners Auctions believed the economic recovery has slowed significantly, arguing the car market declined by 3% in the second half of 2010 after rising 5% on the prior year in the first half.

The challenging car market was offset somewhat by good performances by the commercial division, the truck division and the company's finance unit.

NZPA

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