Spotlight: Expansion at Earl Scheib Chips Away at Its Profit

Earl Scheib, Beverly Hills-based operator of auto paint and body shops, said its earnings fell 17% to $587,000, or 13 cents a diluted share, in the fiscal second quarter. That’s down from $709,000 and 15 cents a year ago. Scheib’s new chief executive, Chris Bement, said the company’s investments to expand its real estate and fleet departments hurt performance but will contribute to future growth. Sales rose 6.2% to $14.77 million for the quarter, with sales in shops open a year or more up 1.3%.