LKQ Corp., parent of distributors Keystone Automotive and NTP-STAG, today (April 25) reported record revenue for the first quarter of 2019 of $3.1 billion, an increase of 14% as compared to $2.7 billion in the first quarter of 2018.
For the first quarter, parts and services organic revenue growth was 0.1% and acquisition revenue growth was 18.3%, while the impact of exchange rates was a negative 3.2%, for total parts and services revenue growth of 15.2%. When adjusting for one fewer selling day in the quarter, organic revenue growth for parts and services was 1.3%.
Net income attributable to LKQ stockholders for the first quarter of 2019 was $98 million, a decrease of 36% year-over-year. Diluted earnings per share was 31 cents as compared to 49 cents for the same period of 2018.
The first quarter results included non-cash impairment charges (net of tax) of $40 million related to the company’s equity investment in Mekonomen AB and $12 million for net assets held for sale. These impairment charges reduced diluted earnings per share for the first quarter of 2019 by 17 cents. On an adjusted basis net income attributable to LKQ stockholders was $176 million, an increase of 4% as compared to the $170 million for the same period of 2018. On an adjusted basis, diluted earnings per share attributable to LKQ stockholders for the first quarter of 2019 was 56 cents, an increase of 2% as compared to 55 cents for the same period of 2018.
Dominick Zarcone, president and CEO of LKQ, stated, “The business performed in-line with our expectations and we continue to make progress with our key productivity initiatives, despite tough revenue growth comparisons in North America, a challenging macro-economic environment in Europe, and the negative year-over-year impact of scrap and exchange rates. I am particularly pleased with the 90 basis points year-over-year improvement in our North America gross margins, a direct result of our ongoing margin enhancement and pricing initiatives to offset inflationary pressures.
“Additionally, during the quarter, Euro Car Parts continued to make progress towards optimizing the T2 distribution center, which had a positive impact on year-over-year European organic revenue growth and margins.”
To view the full report click here.