Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Global aftermarket and recycled parts servicer and retailer LKQ expects a stronger recovery in its business this year as COVID-19 vaccinations increase. The company expects its revenue to grow by the second half of this year, along with an improved cost structure and increased profitability.


In 2020 the company’s consolidated revenue dropped by 7pc to $11.6bn compared to the previous year due to the lockdown restrictions that impacted the company’s operations during the first half of last year. In Q4 2020 the company’s revenue fell by 1.9pc to $3bn from the same quarter last year.


In Europe, LKQ’s flagship region, revenue was almost unchanged, rising 0.5pc to $1.42bn in Q4 2020 compared with $1.41bn in Q4 2019. The specialty division—which consists of the parts and services business—also increased its revenue in the last quarter of 2020 by 17.2pc to $354.37mn compared to $302.37mn in Q4 2019. During the same period under comparison, the company’s revenue from its North American operations declined by 13.5pc to $981.04mn from $1.13bn.


In 2020, LKQ’s adjusted net income increased by 5.6pc to $777mn from $736mn in 2019. The company’s net income in the fourth quarter rose by 26.7pc to $212mn from $167mn in Q4 2019.

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