Full year revenue growth of 10.4% to $6.1 billion, with EBITDA margin at 10.2% in the European segment
Zug, Switzerland. LKQ Corporation (Nasdaq: LKQ), the parent company of LKQ Europe, yesterday reported fourth quarter and full year 2021 results that reflect continued progress with the Company`s operational excellence program and strategic initiatives.
“We delivered solid results in the fourth quarter, and it was a strong finish to a great year. Despite facing significant supply chain disruptions, labor shortages, and inflationary pressures, we delivered the most profitable year in the history of the Company. I want to thank our global teams for delivering on our strategic initiatives in 2021 by focusing on profitable revenue growth, sustainable margin expansion, and driving high levels of cash flow,” noted Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation. “The continued robust cash flow generation enabled us to maintain our balanced capital allocation policy, and through our stock repurchase program and inaugural quarterly dividend payment, we returned $950 million to our stockholders in 2021.”
Global revenue of LKQ Corporation for the fourth quarter of 2021 was $3.2 billion, an increase of 7.9% as compared to $3.0 billion in the fourth quarter of 2020. Revenue for the full year of 2021 was $13.1 billion, an increase of 12.6% as compared to $11.6 billion for the full year of 2020.
LKQ’s European segment achieved a revenue growth of 4.4% to $1.5 billion in the fourth quarter 2021, as compared to $1.4 billion in the fourth quarter of 2020. The segment EBITDA margin for the fourth quarter was 8.9%.
LKQ Europe revenue for the full year of 2021 was $6.1 billion, an increase of 10.4% as compared to $5.5 billion for the same period of 2020. The segment EBITDA margin for the full year was 10.2%.
"We are very pleased with the 2021 results. After a strong fourth quarter, the LKQ Europe team also achieved an impressive performance for the full year. Despite the current challenges in the market, we were able to further increase revenue and EBITDA margins of the European segment. However, uncertainties have increased significantly due to persistently high inflation, Covid-19, as well as continuing challenges in the global supply chains. We are actively working to mitigate cost increases through pricing initiatives and productivity measures. Currently, we are confident that we will meet the high expectations of our customers and investors also in 2022. We want to continue to grow, particularly in Eastern and Western Europe," said Arnd Franz, CEO of LKQ Europe.
About LKQ Europe
LKQ Europe, a subsidiary of LKQ Corporation, with its head office in Zug, Switzerland, is the leading distributor of automotive aftermarket parts for cars, commercial vans and industrial vehicles in Europe. It currently employs approximately 26,000 people with a network of more than 1,000 branches and approximately $6.1 billion in revenue in 2021. The organization supplies around 100,000 independent workshops in over 20 European countries.
The group includes Euro Car Parts, LKQ Fource, RHIAG Group, Elit, Auto Kelly, and STAHLGRUBER Group, as well as recycling specialist, Atracco. LKQ also holds a minority interest in Mekonomen Group.
Further information, the audio webcast of the fourth quarter earnings call, and the accompanying slide presentation can be accessed at www.lkqcorp.com in the Investor Relations section.
Investor Relations Contact
Joseph P. Boutross
Vice President, Investor Relations
T +1 312 621-2793
Media Contact Europe
Dr. Christiane Lesmeister
Director of Communications
LKQ Europe GmbH
T +41 41 884 84 41
M +41 79 728 65 84