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Up, Up and Away: LKQ reports full-year 2023 revenues up 8.4 percent; Uni-Select acquisition ‘ahead of schedule’ 

Chicago, United States ⁠— LKQ has reported its Q4 2023 and full-year 2023 financial results, with annual revenues up 8.4 percent over 2022, ringing in at US$13.9 billion. Fourth-quarter revenues were US$3.5 billion, a 16.6 percent increase compared to Q4 2022.

For the full year 2023, parts and service organic revenue increased 4.7 percent; foreign exchange rates increased revenue by 0.9 percent and the net impact of acquisitions and divestitures increased revenue by 4.8 percent year-over-year for a total parts and services revenue increase of 10.4 percent. 

Other revenues for the full year 2023 fell 19.6 percent, primarily due to weaker commodity prices relative to 2022, noted the company in its release.

Net income for 2023 was US$0.94 billion compared to US$1.14 billion for 2022. Diluted earnings per share for the full year 2023 was US$3.51 compared to US$4.11 for the same period of 2022, a decrease of 14.6 percent.

“The fourth quarter was a strong finish to a successful year for LKQ. I am proud of how the entire team worked through challenging macroeconomic conditions, persistent inflation and declining commodity prices to deliver solid organic revenue growth, year-over-year improvement in segment EBITDA, and strong cash flow generation.” ⁠

— Dominick Zarcone, president and chief executive officer, LKQ

LKQ also noted the Uni-Select integration is “ahead of schedule,” adding that “roughly half of the FinishMaster locations [have been] converted or consolidated into LKQ locations to date.” The remainder are scheduled for completion by the end of Q1 2024. 

“Our Wholesale ⁠— North America team’s agility and integration experience has the Uni-Select plan ahead of schedule, and we are confident in our ability to exceed the $55 million of synergies previously disclosed,” said Justin Jude, executive vice president and chief operating officer of LKQ. 

Senior Vice President and Chief Financial Officer Rick Galloway said LKQ expects “organic revenue growth from each of [its] operating segments,” and that the company believes that, in 2024, LKQ’s margin enhancement initiatives will boost profitability.

The company expects organic revenue growth for parts and services between 3.5 percent and 5.5 percent.

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