FinishMaster profit rises, but economy takes toll

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FinishMaster Inc. posted first-quarter profit of $6.3 million, nearly double the $3.2 million of a year earlier, the Indianapolis company announced late yesterday. FinishMaster attributed the upswing to a settlement from a lawsuit and a one-time prior year charge.

Without the two items, profit would have been $3.2 million, down from $4.2 million a year ago. Revenue increased 11.8 percent to $125.9 million.

FinishMaster, which distributes automotive paints, coatings and other accessories to the collision repair industry, said tough economic conditions have lessened demand for automotive paint and accessories. Rising gasoline prices are causing people to put fewer miles on their cars, driving down the need for its products and services.

During the quarter, FinishMaster consolidated nine locations and cut 2.4 percent of its workers.

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