LKQ Corp., parent of distributors Keystone Automotive and NTP-STAG, reported that fourth-quarter revenue was $3 billion, an increase of 22% 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%.
Net income from continuing operations for the fourth quarter, ended Dec. 31, totaled $40 million, a decrease of 68% year-over-year. Diluted earnings per share from continuing operations was 13 cents as compared to 41 cents for the same period of 2017, a decrease of 68%.
The fourth-quarter results included non-cash impairment charges (net of tax) of $48 million related to the company’s equity investment in Mekonomen AB and $26 million related to goodwill recorded on our 2017 acquisition of an aviation parts recycler.
For the full year of 2018, revenue was $11.9 billion, an increase of 22% 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%.
Net income from continuing operations for the full year was $485 million, a decrease of 10.4% as compared to $540 million for the comparable period of 201. Diluted earnings per share was $1.53, a decrease of 12.1% as compared to $1.74 for the same period of 2017.
“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. 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,” stated President and Chief Executive Officer Dominick Zarcone. “As we look forward to fiscal 2019, we will continue to execute on our productivity initiatives across each operating segment and remain focused on profitable revenue growth, margin enhancement, excellent cash conversion, and optimizing our capital allocation strategy.”
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