LKQ Corp. has reported revenue for the fourth quarter of 2019 of $3.01 billion, an increase of 0.2 percent as compared to $3 billion in the fourth quarter of 2018. For the fourth quarter of 2019, parts and services organic revenue increased 0.9 percent, and acquisition revenue growth was 0.2 percent, while the impact of exchange rates was (1 percent), for total parts and services revenue growth of 0.1 percent. LKQ experienced an annual revenue growth of 5.3 percent to $12.5 billion.
Net income for the fourth quarter of 2019 was $140 million compared to $40 million for the same period in 2018, an increase of 247 percent year-over-year.
“Looking back on 2019, our team worked hard to deliver on our three key initiatives of focusing on profitable revenue growth, sustainable margin expansion, and enhancing levels of cash flow,” said Dominick Zarcone, president and CEO of LKQ. “In 2019, our effective working capital management allowed us to produce the highest annual operating and free cash flow figures in the company’s history. … In fiscal 2020, we will continue to focus on our productivity initiatives across each operating segment while managing the ongoing macro headwinds in Europe and the uncertainties relating to other geopolitical events.”
Net income for the full year of 2019 was $541 million, an increase of 12 percent as compared to $485 million for the same period of 2018.
“Our 2020 annual guidance reflects our emphasis on profitable revenue growth, accretive margins and free cash flow generation,” said Varun Laroyia, executive vice president and CFO. “While we expect revenue growth to moderate from historic levels, the quality of revenue and our margin enhancement initiatives should boost profitability in 2020. Our operational focus and active working capital management are expected to sustain our cash conversion near the heightened 2019 level.”
