LKQ Corp. posts record 2010 2nd quarter results

LKQ Corporation reported diluted earnings per share from continuing operations of $0.26 for the second quarter ended June 30, 2010, an increase of 30.0 percent from $0.20 for the second quarter of 2009. Revenue for the second quarter was $584.7 million, an increase of 20.2 percent as compared to $486.4 million for the same period of 2009. Income from continuing operations for the second quarter of 2010 was $37.9 million, an increase of 33.2 percent as compared to $28.5 million for the same period of 2009.

Overall organic revenue growth for the second quarter was 12.2 percent as a result of strong aftermarket and refurbished parts sales and higher commodity prices as compared to last year. Parts and services revenue, excluding the impact of acquisitions, grew organically by 5.5 percent. Acquisitions made over the previous 12 months contributed 7.6 percent of incremental revenue for the quarter.

On a 6 month year to date basis, revenue was $1.2 billion, an increase of 19.2 percent from $997.2 million for the same 6 month period of 2009. Income from continuing operations for the first six months of 2010 was $89.9 million, as compared to $60.5 million for the first half of 2009. Diluted earnings per share from continuing operations was $0.62 for the first 6 months of 2010, as compared to $0.42 for the same 6 month period of 2009.

During the second quarter of 2010, LKQ continued its expansion through strategic acquisitions that support the Company’s efforts to expand its North American footprint. It acquired wholesale recycling operations in the Winnipeg, Manitoba and Seattle, Washington markets. Collectively, the 2 businesses had annual revenue of approximately $7 million in 2009. LKQ also purchased two heavy-duty truck operations in West Monroe, Louisiana and Jackson, Mississippi. Annual revenue for the acquired truck operations was $7 million in 2009. Additionally during the second quarter, LKQ re-opened a wholesale recycling operation, formerly a Greenleaf location, in Monroe, Georgia, specializing in high-end and European brand vehicles.

Since the start of the third quarter, LKQ acquired an automotive paint distribution business serving the Boston, Massachusetts area, a wholesale recycling operation that will operate in the northern Alabama and Nashville, Tennessee markets and a wholesale recycling operation in Philadelphia, Pennsylvania. The Company also opened a heavy-duty truck operation in Wilson, North Carolina at a former Greenleaf location.