Sector: Consumer Discretionary|Industry: Auto Parts|Market Cap: $9.56B|Employees: 49K
LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. The company distributes bumper covers, automotive body panels, and lights, as well as mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. The company operates in the United States, Canada, the United Kingdom, Germany, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, Taiwan, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Chicago, Illinois.
LKQ reported revenue of $3.584 billion for the quarter ended September 30, 2024, compared to $3.568 billion for the same period in 2023, representing a slight increase. However, organic revenue decreased by 2.8%, offset by a 2.9% increase from acquisitions and divestitures. This indicates that revenue growth is primarily driven by inorganic activities.
The gross margin for the quarter ended September 30, 2024 was 38.8%, compared to 39.0% for the same period in 2023. While there was a slight decrease, the gross margin remained relatively stable, indicating consistent profitability.
Net income attributable to LKQ stockholders was $191 million for the quarter ended September 30, 2024, compared to $208 million for the same period in 2023. The decrease in net income is primarily attributable to a 2.9% year-over-year unfavorable impact of discrete items, mostly related to the unfavorable tax effects of the 2024 Global Restructuring Plan impairments in the current year and the favorable tax effects from the Uni-Select Acquisition foreign exchange forward contract gain in the prior year.