Sherman Oaks-based Earl Scheib, a paint and auto body chain with 107 locations in 23 states, reported a net loss of $397,000, or 10 cents per diluted share, on revenues of $8.5 million for the quarter ending Oct. 31. For the same period in 2007, the company reported a net loss of $376,000, or 9 cents per diluted share, on revenues of $11.7 million.

A reduction in car volume and fewer paint and body shops contributed to Earl Scheib Inc. widening its net loss in the second quarter when compared with the previous year.

Scheib is taking steps to reduce costs while focusing on the quality of service it has long provided, said President and CEO Christian K. Bement.

The company cut nearly $2 million in general and administrative expenses, sold one property in the second quarter for a gain of $526,000 and two other properties in the six month period for a gain of $982,000.

For the six month period, Scheib reported a net loss of $200,000, or 5 cents per diluted share, on revenues of $18.3 million. For the same period in 2007, the company had a net loss of $1 million, or $0.26 per diluted share, on revenues of $23.9 million.