LKQ Corporation reported a 23 percent increase in second quarter income to $46.7 million on record revenue of $759.7 million, a 29 percent increase over the second quarter 2010.
"All of the operating groups performed well during the quarter," stated Robert Wagman, President and Co-Chief Executive Officer of LKQ Corporation. "We believe higher fuel prices and lower miles driven created some challenges for certain segments of our business. Despite those challenges, the company delivered total organic growth of 12.2 percent in the quarter, including 8.4 percent for parts and services," Wagman said.
The company reported a 6.4 percent increase in organic revenue for the quarter in its aftermarket, other new and refurbished products business. For the six month period, organic revenue in the category was up 11 percent compared to the same time last year.
Total sales of aftermarket, other new and refurbished products were $356.2 million in the quarter, up from $290.3 million in the second quarter last year.
Joseph Holsten, Vice Chairman and Co-Chief Executive Officer of LKQ Corporation added, "We continued our acquisition plans which contributed 17.5 percent to our revenue growth year-over-year. While realizing the full potential of these businesses will take some time, we are on pace with our plans for integration."
During the second quarter, LKQ acquired three businesses: the U.S. paint distribution business of Akzo Nobel Coatings Inc., a wheel refinishing business in Ohio, and an aftermarket parts distributor in Ohio.
Wagman added, "Overall, we are excited about the industry dynamics we see today. Alternative parts usage continues to grow, our fill rates are at historical highs, and we continue to see strong insurance support as we explore alternative salvage solutions outside of the traditional auction environment."