Zug (ots) – Strong second half in the European market: segment EBITDA margin of 8.9% was above the range of 8.0% – 8.5% presented at the LKQ Investor Day in September 2020.
LKQ Corporation (Nasdaq:LKQ) announced on 18. February 2021 fourth quarter results. Of the entire 2020 fiscal year published. These demonstrate, despite muted sales trends due to COVID-19 mobility restrictions, continued improvements in operating and balance sheet productivity, as well as further debt reduction.
Dominick Zarcone, President and Chief Executive Officer said, "We delivered strong quarterly results again, with the fourth quarter of 2020 reporting the second highest quarterly profit for 2020 and also the highest profit within a fourth quarter in the company's entire history. With our European business, we completed a strong second half in 2020: At 8.9%, the segment EBITDA margin was above the range of 8.0% – 8.5% that we presented at the LKQ Investor Day in September 2020. Looking ahead to the year ahead, I am confident that our strong operating business, balance sheet and free cash flow, position LKQ for solid growth and value creation with our stakeholders."
Sales for the fourth quarter of 2020 were USD 2.95 billion. 1.9% below the USD 3.01 billion. Of the fourth quarter 2019. Sales for the full year 2020 were $11.6 billion. 7.0% below the previous year's figure of USD 12.5 billion.
LKQ Europe, a subsidiary of LKQ Corporation, has coped well with the impact of the COVID-19 crisis thanks to a strong focus on a stable supply chain and strict cost management from the outset, further supported by progress in the implementation of the 1 LKQ Europe program.
"The health and safety of our around 26.000 European employees were our most important concern during the pandemic. Since the first days of the pandemic, we have taken precautions to protect our business, our employees and our customers. In view of the COVID 19 impact on our business, we quickly implemented consistent cost-cutting measures and were able to address practically all cost structures. Our teams remained fully focused on our customers to support them in a challenging time. Depending on the progress of the vaccination, we expect a recovery in Europe starting in the second quarter of 2021. 2021 will be an important year for our European integration", said Arnd Franz, CEO of LKQ Europe.
LKQ Europe's fourth quarter 2020 revenue was USD 1.43 billion., an increase of 0.6% over USD 1.42 billion. In the fourth quarter of 2019. Full-year sales for 2020 were USD 5.49 billion., a decrease of 5.9% compared to USD 5.83 billion. In the same period of 2019. The targets for the European EBITDA margin, which were announced at the Investor Day on 10. September 2020 were presented, remain unchanged.
About LKQ Europe
LKQ Europe GmbH, headquartered in Zug, Switzerland, is a subsidiary of LKQ Corporation. LKQ Europe is the leading wholesaler of spare parts for cars, commercial vehicles and industrial vehicles in Europe. The company currently employs around 26.000 employees in more than 20 European countries and achieved sales of €5.2 billion in 2020. LKQ Europe has a network of over 1.000 branches. Supplies around 100.000 independent workshops in over 20 countries.000 branches and supplies around 100.000 independent workshops in over 20 countries.
The group consists of the companies Euro Car Parts, Fource, RHIAG Group, Elit, Auto Kelly, the STAHLGRUBER Group and the recycling specialist Atracco. LKQ also holds a minority stake in Mekonomen.