Contents Recycling News....................93 - 98
Auto recyclers head to Malaysia for 9th-biennial International Roundtable
Despite quarterly loss, Fenix doing well By Jeff Sanford
Global leaders from the recycling industry traveled to Malaysia this past summer to participate in the 9th International Roundtable on Auto Recycling. Pictured above right is Ed MacDonald of the Automotive Recyclers of Canada (ARC), one of many national association representatives in attendance.
Auto recyclers from around the world traveled to Malaysia to attend the 9th I nter nat iona l Rou ndt a ble on Auto Recycling (IRT). The event took place at Hatten Hotel Melaka. The IRT brings together the leading i nt e r n at ion a l aut om ot i ve re c yc le r associations, industry players, officials, guest speakers and local auto recyclers to discuss global auto recycling issues. Each IRT is unique to the local hosting association. The event takes place every two years and provides a platform for recyclers to share information about emerging technology, regulatory trends a nd busi ness oppor t u nit ies. It a lso provides a place to recyclers to showcase and share industry best practices. T he 2 016 I RT w a s ho s te d by t he Ma laysia Automot ive Rec ycling Association (MAARA). E d MacDona ld at tended t he I RT
on behalf of the Automotive Recyclers o f C a n a d a (A RC). A l s o a t t e n d i n g f r om Nor t h A me r ic a w a s M ic h a e l Wilson, Executive Vice President of the Automotive Recyclers Association (ARA), the US equivalent to ARC. “Canada, the United States, Malaysia, Austra lia, Singapore, China, and of course Japan were represented and there were several dignitaries from various levels of government, academia and businesses,” says MacDonald. M a cD on a ld not e s t h at t he s he er nu mb er of veh ic le s b ei ng re c yc le d worldwide is astounding. China alone expects to be recycling 14 million vehicles by 2020. Plans are underway in that country to build a new plant that will recycle a vehicle every six minutes. The next IRT will be held in Niagara Falls, Ont., with ARC and ARA serving as joint hosts of the event.
Auto recycling conglomerate Fenix Parts has announced its first quarter 2016 results. While the company reported a loss, the underlying business seems to be doing well. The company recorded a net loss of $41 million for the quarter, or $1.97 per share. The losses were tied to “significant non-cash amortization” and a “goodwill impairment charge” of approximately $43.3 million initially triggered by a decline in the company’s stock price. That is, the losses were largely paper ones. Looking at the company’s underlying business, there was reason to be positive about the performance of the company over the latest quarter. Some of the highlights from the first quarter of 2016 include an increase in net revenues. The amount of money flowing through the company from sales increased by 9 percent to $32.8 million. This is up from $30.2 million in the fourth quarter of 2015. Company executives pointed to the recent acquisitions of recyclers Ocean County, Butler and TriCity as driving growth in revenue. The company also reported that overall sales of recycled OEM products improved, rising to $28.8 million for the first quarter of 2016, up from $26.7 million for the fourth quarter of 2015 and $27.3 million in the first quarter of 2015. Sales from other activities such as scrap sales into the commodities market were approximately $4 million in the first quarter of 2016, up from $3.5 million in the fourth quarter of 2015 and $4.1 million in the first quarter of 2015. Continued on page 96. October 2016 collision Repair 93