LKQ Corp. has announced results for its fourth quarter and full year ended Dec. 31, 2018, showing fourth quarter revenue was $3 billion, an increase of 22 percent from $2.5 billion for the comparable period of 2017.
Parts and services organic revenue growth for the fourth quarter of 2018 was 2.5 percent.
Net income from continuing operations attributable to LKQ stockholders for the fourth quarter of 2018 was $40 million, a decrease of 68 percent year-over-year.
“Looking back on 2018, I am proud of the team’s efforts to complete the Stahlgruber acquisition, produce solid organic growth across all our segments, and effectively manage working capital to allow us to produce the highest annual operating cash flow figure in the company’s history,” said Dominick Zarcone, president and CEO of LKQ. “While I acknowledge that the 2018 results didn’t live up to our initial expectations due to operational challenges in parts of the business and economic headwinds, particularly in Europe, I believe that we are taking the necessary steps to position the company for continued success.”
For the full year of 2018, revenue was $11.9 billion, an increase of 22 percent from $9.7 billion for the comparable period of 2017. Parts and services organic revenue growth for the full year of 2018 was 4.4 percent. Net income from continuing operations attributable to LKQ stockholders for the full year of 2018 was $485 million, a decrease of 10.4 percent as compared to $540 million for the comparable period of 2017.
“Our 2019 annual guidance reflects our emphasis on profitable revenue growth and free cash flow generation,” said Varun Laroyia, executive vice president and CFO. “While we expect revenue growth to moderate from past levels, we believe that our margin enhancement initiatives will boost profitability in 2019 despite headwinds from lower scrap metals prices and a strengthening dollar. The operational focus and continued momentum on active working capital management and prudent capital spending is expected to contribute to an increase in free cash flow generation.”