Double-digit EBITDA margin of 10.7% in European segment in the second quarter 2021.
Zug, Switzerland. LKQ Corporation (Nasdaq:LKQ) today reported second quarter 2021 results that reflect strength for the Company in a number of key metrics including total revenue, segment margins and free cash flow. In other second quarter developments, MSCI increased the Company's ESG rating from A to AA, and Fitch Ratings, Inc. assigned LKQ an initial rating of ‘BBB-’ (outlook stable).
"We were able to produce yet another record performance in the second quarter. This performance marks two key milestones as the first quarterly period with EPS of over $1 and the highest quarterly Segment EBITDA in the Company’s history. The North America and Specialty segments achieved record Segment EBITDA margins in the quarter, and Europe delivered a double-digit margin for the first time since the second quarter of 2016. The European performance further validates the margin targets provided at the start of the 1 LKQ Europe program and gives us confidence that we are on track with the overall goals of the program,” noted Dominick Zarcone, President and Chief Executive Officer.
Global revenue for the second quarter of 2021 was $3.4 billion, an increase of 30.8% as compared to $2.6 billion in the second quarter of 2020, reflecting the annualization of the pandemic impact during the second quarter of 2020.
In the second quarter 2021, LKQ Europe, a subsidiary of LKQ Corporation, achieved a double-digit revenue growth of 30.2% to $1.58 billion, as compared to $1.21 billion in the second quarter of 2020. The segment EBITDA margin increased further to 10.7%.
“We continued our recovery from a challenging 2020 with a particularly strong double-digit growth in revenues in the second quarter of 2021. The great dedication of our employees, together with the ongoing improvements from our 1 LKQ Europe program, and the strong loyalty of our customers helped us to further advance our business throughout Europe. The easing of Covid-19 restrictions and rising vaccination rates in most European countries in the last months were supportive. On the flipside we saw rising logistics and raw material costs. As we move forward, the pandemic will continue to occupy us in 2021. Nevertheless we are still confident to keep up our operating strengths and the execution of our strategies, expecting a good performance for the second half of the year,” said Arnd Franz, CEO of LKQ Europe.
About LKQ Europe
LKQ Europe GmbH, with its head office in Zug, Switzerland, a subsidiary of LKQ Corporation, is the leading distributor of automotive aftermarket parts for cars, commercial vans and industrial vehicles in Europe. It currently employs approximately 26,000 people in over 20 European countries with a network of 1,000 branches and approximately $5.5 billion in revenue in 2020. The organization supplies around 100,000 independent workshops in over 20 countries.
The group includes Euro Car Parts, 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 first 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