From the Associated Press

PHILADELPHIA -- Automotive retail and service chain Pep Boys on Thursday said second-quarter profit fell sharply as revenue from the company's service side trailed off.

The company, which has said it is trying to steer a turnaround, reported net income of $832,000, or a penny per share, compared with $13.5 million, or 22 cents per share, a year earlier. The results are based on 56.1 million shares outstanding in the recent quarter versus 66.3 million shares last year.

Sales slipped 3 percent to $577.4 million from $593.4 million in 2004. Sales of merchandise at stores open at least one year, or same-store sales, edged down 1.5 percent, while same-store revenue in service departments declined 7.4 percent.

The results fell far short of Wall Street expectations. In a Thomson Financial survey, analysts predicted earnings of 11 cents per share on sales of $597.9 million.

2005 The Associated Press. All Rights Reserved.

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